Labour Market Transitions in South Africa: What can we learn from matched Labour Force Survey data?

We generate a longitudinal dataset using the rotating panel component of the nationally representative Labour Force Surveys from 2001 to 2003. We then estimate the transition probabilities across different labour market states over a six month period. We find that unemployed searchers are more likely to find employment than the non-searching unemployed. Informal sector workers are more likely to find formal sector employment than the searching unemployed. Whites are more likely to find and remain in formal sector jobs. However, some part of the Black-White unemployment gap arises from unemployed Whites leaving the labour force at a higher rate.

Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa

What happens when a previously uncovered labor market is regulated? We exploit the introduction of a minimum wage in South Africa and variation in the intensity of this law to identify increases in wages and formal contract coverage, and no significant effects on employment on the intensive or extensive margins for domestic workers. These large, partial responses to the law are somewhat surprising, given the lack of monitoring and enforcement in this informal sector. We interpret these changes as evidence that external sanctions are not necessary for new labor legislation to have a significant impact on informal sectors of developing countries, at least in the short-run.

Investing in Schooling in Chile: The Role of Information about Financial Aid for Higher Education

Recent economic research shows that imperfect information about Mincer returns to education (in developing countries) or about financial aid (in the US) may undermine investments in schooling and exacerbate inequalities in access to education. We extend this literature by presenting the results of an experiment that provided children and a subset of their parents with specific information about financial aid for higher education, and measured the impact on effort in primary school. We developed a DVD information program and randomly assigned a sample of Chilean 8th graders in poor urban schools to information treatment and control groups. Half of the treatment group watched the DVD at school (Student group) and the other half received a copy of the program to watch at home (Family group). Using survey and matched administrative data to measure outcomes three to six months post-intervention, we show that knowledge of financial aid sources improves in treated schools and school-reported absenteeism falls by 14%. These responses appear to be driven by students with higher baseline grades; yet we find no significant effects on 8th Grade scores or 9th Grade enrolment for any students. While parents in the Family treatment group score significantly higher on tests of information related to DVD content, watching the DVD at home is no more effective at changing effort than watching at school, at least for high ability students likely to select in to watching the DVD. Our results suggest that Chile falls somewhere between developing and developed countries: exposure to information about financial aid for post-secondary schooling significantly affects student knowledge and absenteeism, but is insufficient for improving other educational outcomes.finaicial aid, education, Chile, imperfect information, behavior, education investment

When Knowledge Is Not Enough: HIV/AIDS Information and Risky Behavior In Botswana

The spread of the HIV/AIDS epidemic is still fueled by ignorance in many parts of the world. Filling in knowledge gaps, particularly between men and women, is considered key to preventing future infections and to reducing female vulnerabilities to the disease. However, such knowledge is arguably only a necessary condition for targeting these objectives. In this paper, we describe the extent to which HIV/AIDS knowledge is correlated with less risky sexual behavior. We ask: even when there are no substantial knowledge gaps between men and women, do we still observe sex-specific differentials in sexual behavior that would increase vulnerability to infection? We use data from two recent household surveys in Botswana to address this question. We show that even when men and women have very similar types of knowledge, they have different probabilities of reporting safe sex. Our findings are consistent with the existence of non-informational barriers to behavioral change, some of which appear to be sex-specific. The descriptive exercise in this paper suggests that it may be overly optimistic to hope for reductions in risky behavior through the channel of HIV-information provision alone.

When Knowledge is not Enough: HIV/AIDS Information and Risky Behavior in Botswana

The spread of the HIV/AIDS epidemic is still fueled by ignorance in many parts of the world. Filling in knowledge gaps, particularly between men and women, is considered key to preventing future infections and to reducing female vulnerabilities to the disease. However, such knowledge is arguably only a necessary condition for targeting these objectives. In this paper, we describe the extent to which HIV/AIDS knowledge is correlated with less risky sexual behavior. We ask: even when there are no substantial knowledge gaps between men and women, do we still observe sex-specific differentials in sexual behavior that would increase vulnerability to infection? We use data from two recent household surveys in Botswana to address this question. We show that even when men and women have very similar types of knowledge, they have different probabilities of reporting safe sex. Our findings are consistent with the existence of non-informational barriers to behavioral change, some of which appear to be sex-specific. The descriptive exercise in this paper suggests that it may be overly optimistic to hope for reductions in risky behavior through the channel of HIV-information provision alone.

Linking poverty and income shocks to risky sexual behaviour: evidence from a panel study of young adults in Cape Town

Is there a link between household income and income stress, and risky sexual behaviour of young people? Anecdotal and qualitative evidence suggests this may be the case, but there is little quantitative research measuring this relationship. We use two waves of new data from the Cape Area Panel Study to investigate this link for 2,993 African and coloured youths aged 14 to 22 in 2002. In the process, we discuss one type of research design that could allow for a causal interpretation of the effect of income poverty on HIV risk. This design plausibly separates out the effect of income stress from the effect of living in a poor household by comparing behaviours across households with and without negative economic shocks, conditional on baseline income. Our results indicate that females in poorer households are more likely to be sexually active in 2002 and more likely to sexually debut by 2005. In addition, girls in households experiencing negative economic shocks are more likely to reduce condom use between 2002 and 2005. However, they are less likely to have multiple partners in 2002 or have transitioned to multiple partners by 2005. Males who experienced a negative shock are more likely to have multiple partners. Despite the tight research design for assessing shocks, the findings on the impacts of shocks do not generate clear recommendations for policy. There appears to be no systematic difference in condom use at last sex by household income levels or income shocks

The Effects of Financial Aid and Returns Information in Selective and Less Selective Schools : Experimental Evidence from Chile

Schools that provide higher education often belong to either a merit-based selective system or an open-access less selective system. This paper presents the results of a field experiment that provided Grade 12 students in Chile with tailored information about financial aid and average earnings and employment probabilities for schools and careers in both types of schools. No effect is found on the extensive margins of enrollment in the selective or in the less selective sector. Treated students change their intensive margin decisions: they choose careers and schools with lower expected wages and lower employment probabilities, but with higher quality relative to their baseline preferences

New cellular networks in Malawi: Correlates of service rollout and network performance

Cellular technologies have become increasingly important in the developing world; infrastructure for mobile networks has expanded dramatically over the past two decades giving access to remote areas without previous phone service. Despite this expansion, relatively little is known about the correlates of the rollout of cellular phone networks or the performance of these networks. Since the rollout of cellular networks has been largely spearheaded by an active private sector in telecommunications, how demand-side and cost-side factors affect the timing of rollout and quality of network service is of particular interest. In this paper we use new data to estimate the correlates of cellular phone access and network performance across rural areas of Malawi. We compile a dataset which combines administrative data of the entire cellular network of Malawi with geographic and Census data to describe the rollout and the performance of the cellular network measured by the dropped call rate. We find that both demand-side and cost-side factors are important in determining the timing of network access, while demand-side factors appear most relevant for the dropped call rate, one metric of network quality.