IDEAS home Printed from https://ideas.repec.org/p/ctw/wpaper/06102.html
   My bibliography  Save this paper

Second Best? Trends and Linkages in the Informal Economy in South Africa

Author

Listed:
  • Richard Devey
  • Caroline Skinner
  • Imraan Valodia

    () (School of Development Studies, University of KwaZulu-Natal)

Abstract

The idea of a ‘second economy’ has become a feature of recent government economic policy. In this paper we focus on one important element of the second economy – the informal economy. We analyse the nature of the informal economy in South Africa, providing some descriptive statistics and analysis to highlight the nature and extent of the informal economy. Given the present prominence of the ‘second economy’ concept, we provide some analysis of the efficacy of current government support measures to the informal economy, concluding that these are few and far between, patchy and incoherent, and largely ineffective. We then examine linkages between employment in the formal and the informal economy arguing that, contrary to the views of the President and the ANC, there are in fact fairly close linkages between the formal economy and the informal economy. Finally, by way of conclusion, we use the evidence provided in the paper to comment on the accuracy and relevance of the ‘second economy’ concept.

Suggested Citation

  • Richard Devey & Caroline Skinner & Imraan Valodia, 2006. "Second Best? Trends and Linkages in the Informal Economy in South Africa," Working Papers 06102, University of Cape Town, Development Policy Research Unit.
  • Handle: RePEc:ctw:wpaper:06102
    as

    Download full text from publisher

    File URL: http://www.dpru.uct.ac.za/sites/default/files/image_tool/images/36/DPRU%20WP06-102.pdf
    File Function: First version, 2006
    Download Restriction: no

    References listed on IDEAS

    as
    1. Peattie, Lisa, 1987. "An idea in good currency and how it grew: The informal sector," World Development, Elsevier, vol. 15(7), pages 851-860, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabrielle, Wills, 2009. "South Africa’s Informal Economy: A Statistical Profile," MPRA Paper 52909, University Library of Munich, Germany.
    2. Hassan Essop & Derek Yu, 2008. "The South African informal sector (1997 – 2006)," Working Papers 03/2008, Stellenbosch University, Department of Economics.
    3. Zuwarimwe, J. & Kirsten, Johann F., 2010. "The role of social networks in development of small-scale enterprises in the Chimanimani district of Zimbabwe," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(1), pages 1-22, March.
    4. Derek Yu, 2012. "Youths in the South African labour market since the transition: A study of changes between 1995 and 2011," Working Papers 18/2012, Stellenbosch University, Department of Economics.
    5. Derek Yu, 2013. "Youth unemployment in South Africa since 2000 revisited," Working Papers 04/2013, Stellenbosch University, Department of Economics.

    More about this item

    Keywords

    South Africa: 'second economy'; informal economy; formal economy;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ctw:wpaper:06102. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Waseema Petersen). General contact details of provider: http://edirc.repec.org/data/dpuctza.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.