Articles by Andrew Kerr
The time and monetary costs of commuting are extremely high and have increased over the last 20 years. They imply a substantial ‘tax’ on the wages of those who commute to work, notably on the users of public transport. Commuters increasingly use private vehicles and minibus taxis today compared to 1993. The government’s public transport subsidies seem to benefit those in the (lower) middle of the income distribution rather than low-income workers.
Adcorp’s estimated unemployment rate is so low that it disposes of the unemployment crisis. But Adcorp uses a crude currency-demand method to estimate the size of the unrecorded economy, despite researchers’ strong criticism of this method. To estimate informal sector employment, Adcorp mixes up definitions of informal employment and the unrecorded economy and guesses at the labour intensity of the unrecorded economy. They also guess at the number of illegal immigrants. Moreover, Adcorp’s estimates have no statistical precision. Its figures are neither reliable nor credible.
Firm-level data for the period 2005 to 2011 indicate that job creation and destruction rates in South Africa are only slightly lower than among OECD countries. Around 10% of existing jobs are destroyed each year, while the number of new jobs is around 9.5% of existing employment. Larger firms have higher rates of net job creation than small firms. The relatively high reallocation of employment across firms suggests lower rigidities in the South African labour market than is sometimes believed.