1. Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa Seidu Issah, Wisdom Ejebugha Development Economics Stephan Klasen & Ingrid Woolard

2. 2016-06-01 2 Outline Author’s Concluding Remarks Author’s Concluding Remarks How did they Get there? How did they Get there? Empirical Results Empirical Results Critical Comments Critical Comments Policy Issues Policy Issues.

3. 2016-06-01 3 Authors’ Conclusions High unemployment persist without unemployment benefits Unemployment delays setting up of own households Unemployment delays setting up of own households Private safety nets are welfare-enhancing and prevent destitution Support is unequally distributed, pushing many households supporting the unemployed into poverty Private safety nets as disincentive to work; prolonged unemployment.

4. 2016-06-01 4 How did they get there? V (alone) = f (w, p, I) V(attached) = g (w, p, I, cp(age, education) δPr(w), Y/n θ )

5. 2016-06-01 5 Empirical results

6. 2016-06-01 6 South Africa; a peculiar case... Apatheid regime; racism prevails Apatheid regime; racism prevails Discrimination on the labour market Discrimination on the labour market Natives and other minorities forced to live in rurual and crouded households (homelands) Natives and other minorities forced to live in rurual and crouded households (homelands) Lower levesl of education for natives and other minorities (unskilled labour) Lower levesl of education for natives and other minorities (unskilled labour) Squater Africans practice sharecropping. Squater Africans practice sharecropping.

7. 2016-06-01 7 Critical Comments Quantitative analysis lacks qualitative details Quantitative analysis lacks qualitative details House hold size House hold size Activity of the unemployed Activity of the unemployed Other livelihood strategies, etc Other livelihood strategies, etc What happens when you lose your job What happens when you lose your job Individual household formation differences, eg. students Individual household formation differences, eg. students

8. 2016-06-01 8 Policy Considerations State should complements private safety nets State and private investors should improve job prospects through education, skills, or access to self-employment options. Assistance for search and relocation of the unemployed Revive small-scale agriculture and re-create casual labour markets in rural areas Training and public works programmes particularly to rural unemployed youths to enable their transition into urban labour markets Reduction in cost of housing.

9. 2016-06-01 9 Related Works Sonja Keller, 2004; Sonja Keller, 2004; Household Formation, Poverty And Unemployment – The Case Of Rural Households In South Africa. South African Journal of Economics. François-Charles Wolff, 2006; François-Charles Wolff, 2006; Parental transfers and the labor supply of children. Journal of Population Economics: 4.

10. 2016-06-01 10 Thank your !