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Supply-Side Economics of a Good Type: Supporting and Expanding South Africa’s Informal Economy

Author

Listed:
  • Zaakhir Asmal
  • Haroon Bhorat
  • Alexia Lochmann
  • Lisa Martin
  • Kishan Shah

    (Development Policy Research Unit, University of Cape Town)

Abstract

This report presents an empirical profile of South Africa’s informal sector, with an aim of understanding in empirical detail, why South Africa’s informal sector employment remains relatively low in comparison to other developing countries. We present an overview of exogenous constraints to informal activity in South Africa, accompanied by feedback from relevant national and local policy officials where appropriate. We received limited feedback from city officials – itself an indicator of how the informal sector is currently viewed within the country. We consider the limited feedback received within the context of existing data and findings in the literature concerning the informal sector of South Africa. We then provide a preliminary discussion on possible supply-side policy options for expanding the informal sector in South Africa and challenges that may be faced in this regard.

Suggested Citation

  • Zaakhir Asmal & Haroon Bhorat & Alexia Lochmann & Lisa Martin & Kishan Shah, 2024. "Supply-Side Economics of a Good Type: Supporting and Expanding South Africa’s Informal Economy," Working Papers 202403, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:202403
    as

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    File URL: https://commerce.uct.ac.za/sites/default/files/media/documents/commerce_uct_ac_za/1093/dpru-wp202403_0.pdf
    File Function: First version, 2024
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    References listed on IDEAS

    as
    1. Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zoë McLaren & Ingrid Woolard, 2008. "Why has unemployment risen in the New South Africa?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 715-740, October.
    2. repec:cep:stieop:43 is not listed on IDEAS
    3. Rafael La Porta & Andrei Shleifer, 2014. "Informality and Development," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 109-126, Summer.
    4. Grabrucker, Katharina & Grimm, Michael, 2018. "Does crime deter South Africans from self-employment?," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 413-435.
    5. Jeremy R. Magruder, 2012. "High Unemployment Yet Few Small Firms: The Role of Centralized Bargaining in South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 138-166, July.
    6. Oriana Bandiera & Robin Burgess & Narayan Das & Selim Gulesci & Imran Rasul & Munshi Sulaiman, 2013. "Can Basic Entrepreneurship Transform the Economic Lives of the Poor?," STICERD - Economic Organisation and Public Policy Discussion Papers Series 043, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    7. Alexia Lochmann, 2022. "Diagnosing Drivers of Spatial Exclusion: Places, People, and Policies in South Africa’s Former Homelands," Growth Lab Working Papers 199, Harvard's Growth Lab.
    8. Alexia Lochmann, 2022. "Diagnosing Drivers of Spatial Exclusion: Places, People, and Policies in South Africa’s Former Homelands," CID Working Papers 140a, Center for International Development at Harvard University.
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    Cited by:

    1. Haroon Bhorat & Timothy Köhler, 2024. "The Labour Market Effects of Cash Transfers to the Unemployed: Evidence from South Africa," Working Papers 202405, University of Cape Town, Development Policy Research Unit.

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    More about this item

    Keywords

    informal sector; developing country; South Africa; employment;
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