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Market Failure, Human Capital, and Job Search Dynamics in South Africa: The Case of Duncan Village

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  • Patrick Duff
  • David Fryer

    ()
    (Department of Economics and Economic History, Rhodes University)

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    Abstract

    This paper argues that the economic literature on unemployment and poverty in South Africa has under-explored potentially important feedback mechanisms which, because they serve to change the structure of labour markets and affect human capital trajectories, serve to endogenise labour market exclusion. Using a tailor-made database from Duncan Village, East London, this paper probes such processes, focussing around the question of job search. The evidence presented suggests that endogenous factors generating labour market exclusion are important in locking-in exclusion, and suggests that macro-micro linkages need to be further considered.

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    File URL: http://www.dpru.uct.ac.za/sites/default/files/sites/default/files/DPRU%20WP05-098.pdf
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    File Function: First version, 2005
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    Bibliographic Info

    Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 05098.

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    Length: 35 pages
    Date of creation: Sep 2005
    Date of revision:
    Publication status: Published in Working Paper Series by the Development Policy Research Unit, September 2005, pages 1-35
    Handle: RePEc:ctw:wpaper:05098

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    Related research

    Keywords: South Africa: macro-micro linkages; unemployment and poverty;

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    References

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    1. David Fryer & Désiré Vencatachellum, 2003. "Returns to Education in South Africa: Evidence from the Machibisa Township," Working Papers 03076, University of Cape Town, Development Policy Research Unit.
    2. Anne Case & Motohiro Yogo, 1999. "Does School Quality Matter? Returns to Education and the Characteristics of Schools in South Africa," Working Papers 219, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    3. Thomas Hertz, 2003. "Upward Bias in the Estimated Returns to Education: Evidence from South Africa," American Economic Review, American Economic Association, vol. 93(4), pages 1354-1368, September.
    4. JW Fedderke & Martine Mariotti, 2002. "Changing Labour Market Conditions In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 70(5), pages 830-864, 06.
    5. Geeta Kingdon & John Knight, 2000. "Are Searching and Non-searching Unemployment Distinct States when Unemployment is High? The Case of South Africa," Economics Series Working Papers WPS/2000-02, University of Oxford, Department of Economics.
    6. Esther Duflo, 2010. "The Medium Run Effects of Educational Expansion: Evidence from a Large School Construction Program in Indonesia," Working Papers id:2787, eSocialSciences.
    7. Screpanti, Ernesto & Zamagni, Stefano, 2005. "An Outline of the History of Economic Thought," OUP Catalogue, Oxford University Press, edition 2, number 9780199279142.
    8. Steven McIntosh & Anna Vignoles, 2000. "Measuring and Assessing the Impact of Basic Skills on Labour Market Outcomes," CEE Discussion Papers 0003, Centre for the Economics of Education, LSE.
    9. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
    10. Nicoli Nattrass, 2003. "Unemployment and AIDS: The Social-Democratic Challenge for South Africa," SALDRU/CSSR Working Papers 043, Southern Africa Labour and Development Research Unit, University of Cape Town.
    11. Williamson, Oliver E, 1981. "The Modern Corporation: Origins, Evolution, Attributes," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1537-68, December.
    12. Ana M. Ferrer & W. Craig Riddell, 2002. "The role of credentials in the Canadian labour market," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 879-905, November.
    13. Berry, A. & Sabot, R. H., 1978. "Labour market performance in developing countries: A survey," World Development, Elsevier, vol. 6(11-12), pages 1199-1242.
    14. Anne Case & Angus Deaton, 1999. "School Inputs And Educational Outcomes In South Africa," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 1047-1084, August.
    15. J D Lewis, 2002. "Promoting Growth and Employment in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 70(4), pages 338-358, 03.
    16. Matt Jackson, 2003. "The Effects of Social Networks on Employment and Inequality," Theory workshop papers 658612000000000032, UCLA Department of Economics.
    17. David Fryer & Désiré Vencatachellum, 2004. "Coordination Failure and Employment in South Africa," Working Papers 04086, University of Cape Town, Development Policy Research Unit.
    18. Akerlof, George A & Main, Brian G M, 1981. "An Experience-Weighted Measure of Employment and Unemployment Durations," American Economic Review, American Economic Association, vol. 71(5), pages 1003-11, December.
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