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Strategies of the unemployed in South Africa: Does moving allow the unemployed to get ahead?

Author

Listed:
  • Amina Ebrahim

    (PhD student in SALDRU, the School of Economics, University of Cape Town)

  • Murray Leibbrandt

    (SALDRU, School of Economics, University of Cape Town)

  • Ingrid Woolard

    (SALDRU, School of Economics, University of Cape Town)

Abstract

This paper examines the survival strategies of the unemployed using the balanced panel of the first three waves of the National Income Dynamics Study. We find that in response to unemployment and almost no unemployment insurance, unemployed individuals look to parents, relatives and friends for economic support. They are more likely to attach themselves to household that have some income through an employed member or in receive of state support. In many cases the unemployed delay setting up their own households while others move back into family households when faced with persistent unemployment. We use a probit model to show that the unemployed who move are more likely to be employed in a successive wave. The effect of moving on employment status remains significant and positive when we take into account household and individual characteristics. Moving allows the unemployed to get ahead.

Suggested Citation

  • Amina Ebrahim & Murray Leibbrandt & Ingrid Woolard, 2015. "Strategies of the unemployed in South Africa: Does moving allow the unemployed to get ahead?," SALDRU Working Papers 157, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:157
    as

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    References listed on IDEAS

    as
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    4. Sari Pekkala & Hannu Tervo, 2002. "Unemployment and Migration: Does Moving Help?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 621-639, December.
    5. David Card & Thomas Lemieux, 2000. "Adapting to Circumstances (The Evolution of Work, School,and Living Arrangements among North American Youth)," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 171-214, National Bureau of Economic Research, Inc.
    6. Stephan Klasen & Ingrid Woolard, 2009. "Surviving Unemployment Without State Support: Unemployment and Household Formation in South Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 18(1), pages 1-51, January.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Unemployment; national income dynamics study; South Africa;
    All these keywords.

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