Wage dynamics, trade-related wage premia and productivity spillovers : evidence from the South African manufacturing sector

Thesis (PhD)--Stellenbosch University, 2022.ENGLISH ABSTRACT: South Africa continues to grapple with low economic growth, unemployment and inequality, making it crucial to gain further insights into wage inequality which is the largest component of income inequality. This thesis uses the South African Revenue Service and National Treasury tax administration linked employer–employee panel dataset to investigate wage dynamics, trade-related wage premia and productivity spillovers from foreign-connected firms in the South African manufacturing sector. Firstly, this thesis is the first to look at wage growth, taking into account unobserved worker and firm heterogeneity in South Africa. Over time the manufacturing sector has become more productive, while shedding low-skilled, labour-intensive jobs, with increasing wage inequality. As such, this thesis conducts a variance decomposition of wage levels and growth and finds that worker fixed effects dominate both wage levels and growth. However, for low-income employees’ wage levels, the firm fixed effect is relatively more important, showing that firm characteristics should not be neglected when analysing less-skilled workers’ wage differentials. Turning to wage growth, worker fixed effects are found to explain a higher proportion of the change in the wage for low-income workers compared to wage levels. Further, the importance of firm fixed effects in explaining the variation in wage levels increases with firm size. Secondly, this thesis extends the South African literature by estimating the wage premium for simultaneously being a foreign-connected firm and an exporter and/or importer (i.e. a hybrid). This thesis is also the first to empirically estimate the wage premium by differentiating between pure exporters/importers and firms that are both importers and exporters, as well as trading firms and domestically/foreign-owned foreign-connected firms. Given the increasing wage inequality in the sector, it is important to understand which types of firms pay the highest wage premia. There is evidence of hybrid firms paying the highest wage premium. As such, it is the combination of exposure to foreign markets through imported inputs, export sales and foreign direct investment that results in the highest wage premia. Lastly, this thesis is also the first to explore productivity spillovers from foreign-connected firms to local firms using the South African Revenue Service and National Treasury tax administration linked employer–employee panel dataset. One of the ways in which local firms learn from foreign-connected firms is by hiring workers with experience gained in foreign-connected firms. Therefore, understanding the extent to which such spillovers occur in the manufacturing sector is important for knowledge sharing between firms in the sector. There is strong evidence of productivity spillovers from foreign-connected firms to non-foreign-connected firms. These spillovers arise mainly from foreign-connected firms above the median firm size and are received mostly by small local firms. Further, the results suggest that spillovers mainly occur through high-wage foreign-connected firm workers, highlighting the importance of skills.AFRIKAANSE OPSOMMING: Suid-Afrika worstel steeds met lae ekonomiese groei, werkloosheid en ongelykheid, wat die belangrikheid onderstreep om nog insigte te bekom oor loonongelykheid; die is die grootste komponent van inkomste-ongelykheid. Hierdie tesis maak van die Suid-Afrikaanse Inkomstediens en die Nasionale Tesourie se belastingadministrasie gekoppelde werkgewer-werknemer paneeldata gebruik om loondinamika, handelsverwante loonpremies en produktiwiteitsoorlope van ondernemings met buitelandse verbintenisse in die Suid-Afrikaanse vervaardigingsektor te ondersoek. Eerstens – die tesis is die eerste wat loongroei, met inagneming van onwaargeneemde werker- en firma-heterogeniteit in Suid–Afrika, onder die loep te plaas. Met verloop van tyd het die vervaardigingsektor meer produktief geword, terwyl daar van laag-geskoolde, arbeidsintensiewe werksgeleenthede ontslae geraak is, met toenemende loonongelykheid. As sulks onderneem hierdie tesis ’n wisselingsontleding van loonvlakke en -groei en word daar bevind dat werker-vasgestelde effekte loonvlakke, sowel as groei, oorheers. Vir die loonvlakke van lae-inkomste-werknemers, is die onderneming se vasgestelde effek egter relatief belangriker, wat toon dat onderneming-eienskappe nie verontagsaam moet word met die ontleding van minder geskoolde werknemers se loonverskille nie. Wat loongroei betref, is bevind dat werknemers se vasgestelde effekte ’n hoer deel van die verandering in die loon van werknemers met lae inkomste verklaar in vergelyking met loonvlakke. Voorts groei die belangrikheid van onderneming-vasgestelde effekte (wat die wisseling in loonvlakke toelig) algaande die onderneming uitbrei. Tweedens – dié tesis verbreed die Suid-Afrikaanse literatuur deurdat dit ’n skatting lewer van die loonpremie om gelyktydig 'n buitelandse onderneming en 'n uitvoerder en/of invoerder (dit wil sê 'n hibried) te wees. Hierdie tesis is ook die eerste om die loonpremie empiries te skat deur tussen suiwer uitvoerders/invoerders en ondernemings te onderskei, wat sowel invoerders as uitvoerders is, sowel as handelsondernemings en plaaslike/buitelands beheerde en ondernemings met buitelandse verbintenisse. Gegewe die toenemende loonongelykheid in die sektor, is dit belangrik om te begryp watter soorte ondernemings die hoogste loonpremies betaal. Daar is bewyse dat hibriede ondernemings die hoogste loonpremie betaal. As sulks is dit die kombinasie van blootstelling aan buitelandse markte deur ingevoerde insette, uitvoerverkope en direkte buitelandse beleggings wat die hoogste loonpremie meebring. Ten slotte, hierdie proefskrif is ook die eerste om produktiwiteitsoorlope van ondernemings met buitelandse verbintenisse na plaaslike ondernemings, wat gebruik maak van die Suid-Afrikaanse Inkomstediens en Nastionale Tesourie se belastingadministrasie-gekoppelde werkgewer–werknemer paneeldatastel, te ondersoek. Een van die wyses waarop plaaslike ondernemings by buitelandse ondernemings kennis opdoen, is deur werknemers in diens te neem met ondervinding wat opgedoen is in ondernemings met buitelandse verbintenisse. Daarom is dit belangrik om te begryp in watter mate sulke oorlope in die vervaardigingsektor voorkom, met die oog op die deel van kennis tussen ondernemings in die sektor. Daar is stewige bewyse van produktiwiteitsoorlope van ondernemings met buitelandse verbintenisse, na ondernemings wat nie met die buiteland verbind is nie. Hierdie oorlope kom hoofsaaklik voor by ondernemings met buitelandse verbintenisse, wat bo die grootte van die gemiddelde onderneming is, en word meestal deur klein plaaslike ondernemings ontvang. Die resultate dui voorts daarop dat oorlope die belangrikheid van vaardighede benadruk en hoofsaaklik voorkom weens werkers wat hoe lone ontvang en wat buitelands verbind is.Doctora

An applied linguistics investigation of patterns interaction in university tutorials

In South Africa students from disadvantaged educational backgrounds enrol at institutions of higher learning underprepared for the academic work expected of them. One reason for this is that English in South Africa is primarily an urban language and both Black children and teachers, especially in rural areas, lack sufficient exposure to it (Lemmer 1995) and at tertiary institutions students are expected to communicate efficiently in the language of instruction. The real-world problem at issue is ultimately the need for these students studying through the medium of English to develop their ability to participate actively in tutorials to improve both their academic understanding and their spoken discourse competence, which includes the ‘highly complex task of participating in talk-in-interaction’ (Dalton-Puffer 2007:280). Underlying the present study, then, is the conviction that through frequent interaction in the language of instruction, students will not only gain competence in speaking skills, but also deepen and expand their knowledge of their subject areas. This conviction led to the introduction of tutorials on a trial basis in my department and the study sought to develop a framework for analysing patterns of interaction in the tutorials that would also address the question of how the quality of such patterns might be assessed. The main construct investigated was ‘participation effectiveness’ (the quantity of speaker discourse acts and turns and speaker initiative at discourse act and turn-taking levels) and the overall findings indicated that third-year students participated more effectively than first-years; females performed better than males; and males in male-led tutorials used more discourse acts than females; while females in female-led tutorials did better than males. The analyses of effects of tutor discourse behaviour on student participation revealed that the types of questions tutors used and how they were combined were strong determinants of students' participation effectiveness. Although the approach of the study is essentially quantitative, the operationalisation of this main construct's two key components, namely 'participation' and 'initiative', forms a basis for also deriving more qualitative insights into this academically very important genre of spoken discourse.Linguistics and Modern LanguagesD. Litt. et Phil. (Linguistics

Teacher beliefs and attitudes about inquiry-based learning in a rural school district in South Africa

Abstract: Despite growing consensus regarding the value of inquiry-based teaching and learning, the implementation of such a pedagogical practice continues to be a challenge for many South African teachers, especially at rural schools. The research reported in this article concerns the interaction between Grade 10 Physical Sciences teachers’ beliefs about inquiry-based learning, and their practice of inquiry in their classrooms. This research adopted a mixed methods design. In the first phase of the research, quantitative data were collected by distributing a validated questionnaire to Physical Sciences teachers in an education circuit in rural Mpumalanga, South Africa. The next phase of the research involving teacher interviews, provided a more in-depth explanation of some of the findings, which emerged from the questionnaire survey. It was found that sampled teachers from the rural district have a positive attitude towards inquiry in the teaching and learning of Physical Sciences, and recognise the benefits of inquiry, such as addressing learner motivation and supporting learners in the understanding of abstract science concepts. However, despite this positive belief towards inquiry-based learning, teachers are less inclined to enact inquiry-based learning in their lessons. Teachers claim that the implementation of inquiry-based learning is fraught with difficulty, such as availability of laboratory facilities, teaching materials, time to complete the curriculum, and large classes, which creates tension in their willingness to implement it

Trade unions and democracy in South Africa: Union organizational challenges and solidarities in a time of transformation

Based on a nationwide survey, this article focuses on the perceptions of COSATU members on two of the central issues that have dominated debates on the South African labour movement: the advisability of COSATU’s Alliance with the ANC and the extent of internal union democracy. The survey revealed that the ANC-Alliance continues to enjoy mass support, whilst internal democracy remains robust. At the same time, the federation faces the challenges of coping with – and contesting - neo-liberal reforms, retaining and reenergizing rank and file in the post-apartheid era, and in reaching out to potential members in the informal sector and other areas of insecure work

Risk factors for Coronavirus Disease 2019 (COVID-19) death in a population cohort study from the Western Cape Province, South Africa

BACKGROUND. Risk factors for coronavirus disease 2019 (COVID-19) death in sub-Saharan Africa and the effects of human immunodeficiency virus (HIV) and tuberculosis on COVID-19 outcomes are unknown. METHODS. We conducted a population cohort study using linked data from adults attending public-sector health facilities in the Western Cape, South Africa. We used Cox proportional hazards models, adjusted for age, sex, location, and comorbidities, to examine the associations between HIV, tuberculosis, and COVID-19 death from 1 March to 9 June 2020 among (1) public-sector “active patients” (≥1 visit in the 3 years before March 2020); (2) laboratory-diagnosed COVID-19 cases; and (3) hospitalized COVID-19 cases. We calculated the standardized mortality ratio (SMR) for COVID-19, comparing adults living with and without HIV using modeled population estimates. RESULTS. Among 3 460 932 patients (16% living with HIV), 22 308 were diagnosed with COVID-19, of whom 625 died. COVID- 19 death was associated with male sex, increasing age, diabetes, hypertension, and chronic kidney disease. HIV was associated with COVID-19 mortality (adjusted hazard ratio [aHR], 2.14; 95% confidence interval [CI], 1.70–2.70), with similar risks across strata of viral loads and immunosuppression. Current and previous diagnoses of tuberculosis were associated with COVID-19 death (aHR, 2.70 [95% CI, 1.81–4.04] and 1.51 [95% CI, 1.18–1.93], respectively). The SMR for COVID-19 death associated with HIV was 2.39 (95% CI, 1.96–2.86); population attributable fraction 8.5% (95% CI, 6.1–11.1). CONCLUSIONS. While our findings may overestimate HIV- and tuberculosis-associated COVID-19 mortality risks due to residual confounding, both living with HIV and having current tuberculosis were independently associated with increased COVID-19 mortality. The associations between age, sex, and other comorbidities and COVID-19 mortality were similar to those in other settings.The Western Cape Provincial Health Data Centre from the Western Cape Department of Health, the US National Institutes for Health (grant numbers R01 HD0804, the Bill and Melinda Gates Foundation, the United States Agency for International Development and the Wellcome Trust.https://academic.oup.com/cid/am2023Veterinary Tropical Disease

Risk factors for Coronavirus disease 2019 (Covid-19) death in a population cohort study from the Western Cape province, South Africa

Risk factors for coronavirus disease 2019 (COVID-19) death in sub-Saharan Africa and the effects of human immunodeficiency virus (HIV) and tuberculosis on COVID-19 outcomes are unknown. We conducted a population cohort study using linked data from adults attending public-sector health facilities in the Western Cape, South Africa. We used Cox proportional hazards models, adjusted for age, sex, location, and comorbidities, to examine the associations between HIV, tuberculosis, and COVID-19 death from 1 March to 9 June 2020 among (1) public-sector “active patients” (≥1 visit in the 3 years before March 2020); (2) laboratory-diagnosed COVID-19 cases; and (3) hospitalized COVID-19 cases. We calculated the standardized mortality ratio (SMR) for COVID-19, comparing adults living with and without HIV using modeled population estimates.Among 3 460 932 patients (16% living with HIV), 22 308 were diagnosed with COVID-19, of whom 625 died. COVID19 death was associated with male sex, increasing age, diabetes, hypertension, and chronic kidney disease. HIV was associated with COVID-19 mortality (adjusted hazard ratio [aHR], 2.14; 95% confidence interval [CI], 1.70–2.70), with similar risks across strata of viral loads and immunosuppression. Current and previous diagnoses of tuberculosis were associated with COVID-19 death (aHR, 2.70 [95% CI, 1.81–4.04] and 1.51 [95% CI, 1.18–1.93], respectively). The SMR for COVID-19 death associated with HIV was 2.39 (95% CI, 1.96–2.86); population attributable fraction 8.5% (95% CI, 6.1–11.1)

Plasmablastic lymphoma in HIV+ patients: an expanding spectrum.

AIM: To describe an unusual human immunodeficiency virus (HIV)-associated lymphoma in uncommon sites. Plasmablastic lymphoma is a distinctive HIV-associated tumour that was first described in the jaws and oral cavity. Only two cases (stomach and lung) have been documented in extra-oral sites. MATERIALS AND METHODS: Four cases were encountered in HIV+ patients: three in the anorectal region and one which was nasal and paranasal. The cases were routinely processed and immunohistochemistry was performed on formalin-fixed paraffin-embedded tissue. RESULTS: The cases showed the typical morphological appearances of a high-grade, blastic non-Hodgkin's lymphoma (brisk mitotic activity and tingible body macrophages). In addition, some cells had a plasmacytoid appearance and paranuclear clearing. Immunophenotypically, the tumour cells were negative for LCA, CD20 and CD45RA. However, a small proportion of cells (5%) were immunoreactive for CD79a and the majority were positive with VS38c, indicative of plasma cell differentiation. Kappa light chain and IgG heavy chain restriction was also detected. CONCLUSIONS: Plasmablastic lymphoma may occur in extra-oral sites and has a characteristic immunophenotype including focal expression of CD31 by the neoplastic cells. Awareness of the absence of expression of conventional B-cell markers and its presence in unusual sites should facilitate the diagnosis of plasmablastic lymphoma in HIV+ patients

Sequential Cross-Sectional Surveys in Orange Farm, a Township of South Africa, Revealed a Constant Low Voluntary Medical Male Circumcision Uptake among Adults despite Demand Creation Campaigns and High Acceptability

International audienceWHO recommends a male circumcision (MC) prevalence rate higher than 80% to have a substantial impact on the HIV-AIDS epidemic in Eastern and Southern Africa. Orange Farm, a township in South Africa, has a free-for-service voluntary medical male circumcision (VMMC) clinic in operation since 2008. Following an intense campaign from 2008 to 2010, MC prevalence rate increased to 55.4% (ANRS-12126). Ongoing and past VMMC campaigns focused on youths, through school talks, and adults at a community level. The main objective of the study was to assess the change in MC prevalence rate among adults aged 18–19 and 18–49 years in the past 5 years

Male circumcision (MC) prevalence rate among men aged 18–49 years obtained in three independent cross-sectional surveys conducted in Orange Farm in the years 2007–2008, 2010–2011 and 2015.

<p>Male circumcision (MC) prevalence rate among men aged 18–49 years obtained in three independent cross-sectional surveys conducted in Orange Farm in the years 2007–2008, 2010–2011 and 2015.</p