Earnings functions, labour market discrimination and quality of education in South Africa

Education is a key determinant of earnings, as several South African studies have confirmed. Years of schooling completed, however, provides an imperfect approximation of the effective level of education achieved, mainly due to variations in the quality of education received. This study addresses this issue by, for the first time in South Africa, incorporating quality of education in the modelling of earnings. Differences in quality of education are viewed as a form of pre-labour market discrimination. By decomposing the wage gap before and after controlling for educational quality, more accurate estimates of the true levels of labour market discrimination are obtained. The main hypothesis tested is that controlling for quality will reduce the component of the wage gap ascribed to labour market discrimination. The results show a systematic decrease in the labour market discrimination component with increased adjustments for quality of education. Almost half of the previous labour market discrimination can be explained by differences in quality, yet the proportion of racial wage differentials ascribed to labour market discrimination is still found to be significant. The clear implication is that current estimates of labour market discrimination are exaggerated and a more careful analysis of earnings is required to re-assess the levels of discrimination in the South African labour market.earnings functions, labour market, discrimination, education, South Africa

Risk it or insure it? : understanding the microinsurance purchase decision

These focus notes and other material related to the project can be downloaded at www.cenfri.orgFrench version available in IDRC Digital Library: Prendre le risque ou s’assurer ? : comprendre la décision d’achat de micro-assurance http://idl-bnc.idrc.ca/dspace/handle/10625/46675Portuguese version available in IDRC Digital Library: Arriscar ou segurar? : entender a decisão sobre comprar microsseguroThis focus note explores the factors that influence people in decision making towards buying insurance. The analysis draws on evidence from five country studies (Colombia, India, the Philippines, South Africa and Uganda) on the development of microinsurance markets alongside the impact of regulation. The overall aim is to assess the effect of regulation on insurance markets and to gain insights which can guide policy-makers, regulators and supervisors in support of the development of microinsurance in their jurisdiction

Qu'est-ce que la micro-assurance et pourquoi est-elle importante?

Version anglaise disponible dans la Bibliothèque numérique du CRDI: What is microinsurance and why does it matter? http://idl-bnc.idrc.ca/dspace/handle/10625/45236Version portugaise disponible dans la Bibliothèque numérique du CRDI: O que é microsseguro e por que ele é importante? : a base lógica para o microsseguro a partir da perspectiva de um regulador http://idl-bnc.idrc.ca/dspace/handle/10625/4667

Implementing FATF standards in developing countries and financial inclusion : findings and guidelines

This report, emanating from a project commissioned by the FIRST Initiative, considers the impact of the implementation of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) controls on financial inclusion in five countries (Indonesia, Kenya, Mexico, Pakistan and South Africa). Based on these findings, it develops a set of guidelines to assist the authorities in developing countries to design effective AML/CFT regimes that are compliant with Financial Action Task Force (FATF) standards and supports financial inclusion. The report and guidelines will be of benefit to countries striving towards the dual goals of protecting their institutions against money laundering and the financing of terrorism as well as extending financial inclusion, irrespective of whether protective measures are being considered in the process of implementing or amending AML/CFT controls to meet the Forty Nine Recommendations of the FATF or in order to meet other, related international requirements, such as those set out in the 2000 United Nations Convention on Transnational Organised Crime or the 2003 United Nations Convention Against Corruption.The project was supervised and guided by a steering committee consisting of representatives from the FIRST Management Unit, World Bank, International Monetary Fund (IMF), the UK&rsquo;s Department for International Development (DFID), the Consultative Group to Assist the Poor (CGAP), the South African National Treasury, the FinMark Trust and Professor Nikos Passas, an acknowledged world expert on AML/CFT standards and implementation.<br /

Recent Findings on Tax-Related Regulatory Burden on SMMEs in South Africa

This policy brief is based on DPRU Working Paper 06/105, Recent Findings on Tax-Related Regulatory Burden on SMMEs in South Africa by Doubell Chamberlain and Anja Smith

Recent findings on Tax-Related Regulatory Burden on SMMEs in South Africa: Literature Review and Policy Options

Regulatory compliance costs impose a deadweight burden on firms and therefore should be minimised. In achieving this goal, it is necessary to embrace a process of smart regulation, rather than focus on deregulation. Tax compliance cost is one type of regulatory costs that is often viewed to have a large negative impact on SMMEs

Earnings functions, labour market discrimination and quality of education in South Africa

Thesis (MComm) -- University of Stellenbosch, 2001.Full text to be digitised and attached to bibliographic record

Recent Findings on Tax-Related Regulatory Burden on SMMEs in South Africa. Literature Review and Policy Options

Regulatory compliance costs impose a deadweight burden on firms and therefore should be minimised. In achieving this goal, it is necessary to embrace a process of smart regulation, rather than focus on deregulation. Tax compliance cost is one type of regulatory costs that is often viewed to have a large negative impact on SMMEs. To gauge the impact of this cost on small business in South Africa, this document reviews three available studies on the impact of tax compliance costs on South African SMMEs. The three studies reviewed are: • Counting the Cost of Red Tape for Business in South Africa by SBP (2005); • Measurement of Value Added Tax Act and Regional Services Councils Act-induced Administrative Burdens for South African Small Businesses by Upstart Business Strategies (2004), commissioned by the Department of Trade and Industry (dti); and • SMME Facilitation Program (Report Version) by the South African Revenue Services (SARS) to be released in 2005. South African tax compliance costs cannot be judged in isolation. Available information on South African tax compliance costs and their impact on SMMEs are captured in the three reviewed studies. The SBP (2005) study estimates total regulatory compliance costs for formal firms in South Africa to have been approximately R79 billion in 2004, 6.5 per cent of GDP, and total tax compliance costs to have been roughly R20 billion in the same year. Due to the nature of the report, it makes no tax-specific recommendations and only focuses on broad regulatory compliance recommendations. The Upstart Business Strategies (2004) study focuses on two specific taxes, Value-Added Tax (VAT) and Regional Service Council Levies (not administered by SARS, but by regional service councils). The study employs Mistral®, a proprietary “bottom-up” technique to quantify tax compliance costs. The study finds that the average SMME spends approximately R6 027 on two compliance activities associated with VAT – recordkeeping and completion tax returns. The total VAT compliance cost for an average SMME is estimated to range between R6 000 and R8 000 annually. The recommendations of the study are of a broad practical nature and focused on reducing the time spent on specific tax compliance activities. It does not specify the how of its recommendations, for example, it suggests that the internal reliability of SARS logistics needs to be improved and that queing time spent at SARS needs to be reduced, but does not explain how these outcomes should be achieved. The SARS (2005) study does not generate its own empirical data. It reviews the empirical findings of the above two studies and findings of other studies broadly or specifically focused on SMMEs and the formal/informal economic divide. In addition, it draws on a number of qualitative insights gained during interaction with a range of individuals and organisations aware of small business concerns. A number of recommendations with regards to SARS structures (for example, creation of a Small Business Centre and Small Business help desks), SARS communication channels and SARS products (specifically VAT) are made. Rather than simply focusing on small “cosmetic” tax changes, what is required is intensive co-ordination of SMME policy across different government departments. The narrow focus of the reviewed studies, excluding the SARS report, strengthen the idea that relevant policy considerations do not extend beyond the implementation of technical changes to tax legislation. However, a strong case can be made for a number of other SMME policy-related issues to receive greater emphasis than tax compliance costs. Conclusions relative to tax compliance cost include the fact that a large component of tax compliance costs can be ascribed to firm-level inefficiencies. While a reduction in the tax compliance burden can help to create a more enabling environment for business, a special tax regime for small businesses might not be the best way to achieve lower compliance costs. Far more than simply tax changes will be required to unlock the South African SMME market.South Africa: SMMEs, Regulatory compliance costs, tax compliance costs

What is microinsurance and why does it matter?

French version available in IDRC Digital Library: Qu'est-ce que la micro-assurance et pourquoi est-elle importante? http://idl-bnc.idrc.ca/dspace/handle/10625/46679These focus notes and other material related to the project can be downloaded at www.cenfri.orgPortuguese version available in IDRC Digital Library: O que é microsseguro e por que ele é importante? : a base lógica para o microsseguro a partir da perspectiva de um reguladorThe table of contents for this item can be shared with the requester. The requester may then choose one chapter, up to 10% of the item, as per the Fair Dealing provision of the Canadian Copyright ActMicroinsurance forms part of the broader insurance market, but is distinguished by its focus on the low-income market which often needs specific distribution methods and products. This bulletin note draws on the findings of a study by the IAIS/Microinsurance Network (MIN) Joint Working Group on Microinsurance on the development of microinsurance markets in Colombia, India, the Philippines, South Africa and Uganda. The project was initiated to support the development of microinsurance internationally by examining its role and regulation in these five countries. Governments can lend support by removing potential regulatory obstacles, helping develop the infrastructure needed for microinsurance and providing consumer protection

Arriscar ou segurar? : entender a decisão sobre comprar microsseguro

Estas notas de foco e outros materiais relativos ao projeto podem ser baixados em www.cenfri.orgVersión inglés en la biblioteca: Risk it or insure it? : understanding the microinsurance purchase decisionVersión francés en la biblioteca: Prendre le risque ou s’assurer ? : comprendre la décision d’achat de micro-assuranc