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Defining and measuring informal employment in South Africa: A review of recent approaches

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  • Derek Yu

    ()
    (Department of Economics, University of Stellenbosch and University of the Western Cape)

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Abstract

This paper reviews the Stats SA methodologies to measure informal employment before and after the introduction of the Quarterly Labour Force Survey (QLFS), as well as other recently proposed approaches (e.g., Devey, Skinner and Valodia, Heintz and Posel, etc.), so as to investigate the congruence, if any, between the various measures of the rate of informality. Furthermore, econometric techniques are used to investigate commonalities and differences in the way in which the different measures of informality are associated with demographic and employment characteristics. The results suggest that informal employment is much bigger if the post-2007 Stats SA methodology, which considers employment as informal regardless of whether the activities take place in the informal sector or not, is adopted.

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File URL: http://www.ekon.sun.ac.za/wpapers/2010/wp092010/wp-09-2010.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Stellenbosch University, Department of Economics in its series Working Papers with number 09/2010.

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Date of creation: 2010
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Handle: RePEc:sza:wpaper:wpapers108

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Related research

Keywords: South Africa; Household survey; Labour market trends; Informal employment;

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Cited by:
  1. Aysit Tansel & Elif Oznur Kan, 2012. "Labor Mobility Across The Formal/Informal Divide in Turkey: Evidence From Individual Level Data," ERC Working Papers 1201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2012.
  2. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers 63, Southern Africa Labour and Development Research Unit, University of Cape Town.

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