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Informality and Inclusive Growth in Sub-Saharan Africa

Author

Listed:
  • Aalia Cassim
  • Kezia Lilenstein
  • Morne Oosthuizen
  • Francois Steenkamp

    (University of Cape Town
    Deputy Director)

Abstract
This research seeks to explore the relationship between informality and inclusive growth in sub-Saharan Africa, with a particular focus on South Africa. South Africans typically hold one of two opposing views on the informal sector. The first is that informality should be encouraged as an under-utilised source of new employment; the second is that it should be discouraged as an inferior source of employment. The central research question is therefore: “Do informal labour markets promote or constrain inclusive growth?” In order to examine the hypotheses, we use three different methodologies. Firstly, we undertake a regional evidence synthesis examining literature and case studies from the sub-Saharan Africa region. Secondly, we expand on the South African case study and examine the nature of transitions within the labour market. Thirdly, we examine to what extent income shocks may impact the likelihood of engagement within the informal sector.

Suggested Citation

  • Aalia Cassim & Kezia Lilenstein & Morne Oosthuizen & Francois Steenkamp, 2016. "Informality and Inclusive Growth in Sub-Saharan Africa," Working Papers 201602, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:201602
    as

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    File URL: https://commerce.uct.ac.za/sites/default/files/content_migration/commerce_uct_ac_za/1093/files/DPRU%2520WP201602.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Jacobus Johannes de Jongh, 2019. "Understanding the Drivers of Long-Term Youth Unemployment: Micro-Level Evidence from South Africa," Proceedings of International Academic Conferences 9912297, International Institute of Social and Economic Sciences.
    2. Haroon Bhorat & François Steenkamp & Christopher Rooney & Nomsa Kachingwe & Adrienne Lees, 2016. "Understanding and characterizing the services sector in South Africa: An overview," WIDER Working Paper Series wp-2016-157, World Institute for Development Economic Research (UNU-WIDER).
    3. Amponsah, Mary & Agbola, Frank W. & Mahmood, Amir, 2021. "The impact of informality on inclusive growth in Sub-Saharan Africa: Does financial inclusion matter?," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1259-1286.
    4. Haroon Bhorat & Kezia Lilenstein & Morné Oosthuizen & Amy Thornton, 2020. "Wage polarization in a high-inequality emerging economy: The case of South Africa," WIDER Working Paper Series wp-2020-55, World Institute for Development Economic Research (UNU-WIDER).
    5. Amponsah, Mary & Agbola, Frank W. & Mahmood, Amir, 2023. "The relationship between poverty, income inequality and inclusive growth in Sub-Saharan Africa," Economic Modelling, Elsevier, vol. 126(C).
    6. Haroon Bhorat & François Steenkamp & Christopher Rooney & Nomsa Kachingwe & Adrienne Lees, 2016. "Understanding and characterizing the services sector in South Africa," WIDER Working Paper Series 157, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    informality; inclusive growth; employment; labour markets; transitions; South Africa;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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