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New Evidence on Subjective Wellbeing and the Definition of Unemployment in South Africa

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  • Neil Lloyd

    (SALDRU, University of Cape Town, South Africa)

  • Murray Leibbrandt

    (SALDRU, School of Economics, University of Cape Town)

Abstract

Access to new nationally-representative, individual-level panel data from South Africa has allowed for the revalidation of Kingdon and Knight's (2006) discussion on the definition of unemployment. This paper investigates subjective wellbeing as a measure of comparison between labour market statuses. It finds that on the grounds of subjective wellbeing the non-searching unemployed (or 'discouraged') are significantly worse-off than the not-economically-active. Moreover, evidence suggests that with regard to the relationship between life satisfaction and labour market status, the 'discouraged' have 'hit rock bottom'. This paper therefore advocates for the inclusion of the non-searching unemployed in the labour force and the use of a broad definition of unemployment, on the grounds that rational individuals would not self select into a lower state of wellbeing.

Suggested Citation

  • Neil Lloyd & Murray Leibbrandt, 2013. "New Evidence on Subjective Wellbeing and the Definition of Unemployment in South Africa," SALDRU Working Papers 094, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:094
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    References listed on IDEAS

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    1. Taryn Dinkelman, 2004. "How Household Context Affects Search Outcomes Of The Unemployed In Kwazulu‐Natal, South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(3), pages 484-521, September.
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    Cited by:

    1. Byela Tibesigwa & Martine Visser & Brennan Hodkinson, 2016. "Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 361-389, August.
    2. Elizabeth Lwanga Nanzir, 2017. "Financial Inclusion and Welfare in Post-Apartheid South Africa," Working Papers 323, African Economic Research Consortium, Research Department.
    3. Cwenga Mayekiso & Emeka Obioha, 2022. "Survey of anti-social related encounters of unemployment in Eastern Cape, South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(5), pages 335-343, July.
    4. Kim Engle & Cecil Mlatsheni, 2017. "The extent of churn in the South African youth labour market: Evidence from NIDS 2008-2015," SALDRU Working Papers 201, Southern Africa Labour and Development Research Unit, University of Cape Town.

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