Occupational segregation, poverty and race Carlos Gradn Background - - PowerPoint PPT Presentation
Engagement on on Str Strategie ies to to Overcome In Inequali lity in in So South Afr frica 1-2 Ju June e 2017, Pret retoria, Sou outh Afr fric ica SESSION 5: PROMOTING SOCIAL MOBILITY Occupational segregation, poverty and race
Engagement on
Strategie ies to to Overcome In Inequali lity in in So South Afr frica
1-2 Ju June e 2017, Pret retoria, Sou
fric ica SESSION 5: PROMOTING SOCIAL MOBILITY
Development Economics, 2014.
Research, 2015.
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– Living conditions: Income, poverty and material deprivation – Education – Labor market outcomes:
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– An ideology, discriminatory legislation, and a set of practices seeking to implement and legitimize social difference and economic inequality (Beinart and Dubow, 1995).
farms, mines, and other sectors, while depriving them from access to education, economic and political resources. – Core elements:
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labor market strongly segregated and stratified by race.
– Formal dismantlement of the remaining segregative legislation. – Implementation of anti-discriminatory affirmative policies (i.e. Labour Relations Act, Employment Equity Act, Promotion of Equality and Prevention of Unfair Discrimination Act, Black Economic Empowerment, …).
– Especially in the context of a sluggish economy, the result of the shrinkage of the non-mineral tradable sector from the early 1990s on (Rodrik, 2008), with a chronically high level of unemployment.
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Source: STATS SA (2017), Living Conditions of Households in South Africa, LCS 2014/15
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Gradín (2014)
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Gradín (2014) Absolute White-(African & Coloured) raw income differential (income relative to country´s median)
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Gradín (2014) Relative (white- (African & Coloured) )/white income differential (income relative to country´s median)
Poverty rate
Gap in poverty rates between black Africans and whites
Poverty rate
Source: Gradín (2013) using PSLSD 1993, and NIDS 2008
Family background 13 pp (24%) Gradín (2014): PL=60% median income US: 24 pp (65% explained), Brazil: 19 pp (75% explained), South Africa : 31 pp (83% explained).
Source: Gradín (2013) using NIDS 2008
Large racial inequalities in living conditions (material deprivation)
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Source: Gradín (2015) using NIDS 2008
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– Large but declining gap in attained education with whites having levels comparable with those of developed countries and Africans being closer to the developing world. (Chisholm, 2004). – Gap in quality, starting at primary schools, with South African schools generally performing worse than neighbor countries despite their larger amount of resources (van der Berg, 2007).
2007).
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– Unemployment rapidly increased, especially among blacks, during the 1990s and 2000s, when the economy was unable to absorb the growing supply of semi-skilled labor (e.g. Kingdon and Knight 2007; Banerjee et al. 2008).
inflexibility and a small informal sector (e.g. Kingdon and Knight 2007). – Large employment gap by race largely (but not entirely) explained by the characteristics of workers from each group (Kingdon and Knight, 2004; Rospabé, 2002). – While changes in the characteristics of black South African men after apartheid have made them more employable over time, their propensity to be employed has declined (Wittenberg, 2007)
2002).
– Large and declining, with increasing importance of differences in the returns to education.
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– Occupational attainment: important gap and increasing unexplained component (e.g. Treiman et al., 1996; Rospabé, 2002; Treiman, 2007; Keswell et al., 2013). – Higher presence of blacks in more skilled occupations (along with their improved education) has contributed to reducing the racial poverty gap (Gradín, 2013). But is the labor market becoming less segregated and stratified by race? – No strong evidence of a sustained or significant decline in occupational segregation or stratification (Gradín, 2017a). – Interplay in segregation/stratification between race and gender (Gradín, 2017b).
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Managers Professionals and Technicians Women Women Men Men Source: Gradín (2017b) using PALMS
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Managers Professionals and Technicians Women Women Men Men Source: Gradín (2017b) using IPUMS
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Elementary occupations Source: Gradín (2017b) Women Women Men Men Labor Force Surveys (PALMS) Census and CS
White-Black segregation (Gini, Dissimilarity D) and concentration (GiniC, DC) indices
IPUMS-I: 1996 and 2001 censuses; 2007 CS
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Source: Gradín (2017a) using IPUMS and PALMS
Labor Force surveys (PALMS)
Segregation Segregation of blacks into low-paying occupations
2007 Segregation % observed Concentration % observed Observed 0.599 100 0.567 Unexplained 0.424 70.8 0.292 51.4 Explained (total) 0.175 29.2 0.276 48.6 Location 0.021 3.6 0.005 0.9 Education 0.155 25.9 0.247 43.5 Demographics −0.003 −0.6 0.023 4.0 Immigration 0.002 0.3 0.001 0.1
Decomposition of segregation and concentration Gini
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Source: Gradín (2017a) using IPUMS Using PALMS 2015: Segregation 31% Concentration 56%
1996 Segregation % observed Concentration % observed Observed 0.672 100 0.606 Unexplained 0.490 72.9 0.242 39.9 Explained (total) 0.182 27.1 0.364 60.1 Location 0.015 2.2
−2.3 Education 0.169 25.2 0.373 61.6 Demographics −0.001 −0.2 0.005 0.9 Immigration 0.000 0.0 0.000 −0.1 2001 Observed 0.685 100 0.641 Unexplained 0.501 73.1 0.342 53.3 Explained (total) 0.184 26.9 0.299 46.7 Location 0.019 2.8 −0.006 −1.0 Education 0.168 24.5 0.293 45.7 Demographics −0.003 −0.5 0.013 2.0 Immigration 0.001 0.1 0.000 0.0
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Source: Gradín (2017a) using IPUMS Decomposition of segregation and concentration Gini
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Unexplained segregation (Gini and D) and concentration (GiniC and DC) indices Source: Gradín (2017a) using IPUMS and PALMS Black and white worker with similar characteristics
– characteristics (location, demographic, education). – labor market outcomes, and living conditions.
to more skilled jobs) but racial relative inequalities are quite persistent.
employment, segregation of jobs and earnings inequality.
– Blacks and whites work in different occupations, with an over-representation of the former in the lowest- paying jobs (it may be worse public versus private, establishment, jobs …). – A third of segregation, a half of stratification explained inequality the distribution of worker’s characteristics (e.g. education), but a large share remains unexplained.
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Africans Whites 1996 2001 2007 1996 2001 2007 Rural 35.5 32.9 32.7 8.6 8.0 7.8 Western Cape 4.6 5.3 6.4 18.2 18.7 20.6 Eastern Cape 10.0 8.7 11.3 7.2 6.7 6.3 Northern Cape 1.2 1.1 1.1 2.4 2.2 1.8 Free State 8.8 8.0 6.4 6.6 4.9 5.6 KwaZulu-Natal 18.0 17.7 17.7 13.0 11.0 9.8 North West 10.8 10.3 9.3 4.5 5.0 4.2 Gauteng 28.5 31.1 30.5 40.4 44.2 43.5 Mpumalanga 9.0 8.6 8.8 5.5 4.4 5.9 Limpopo 9.1 9.3 8.5 2.5 2.9 2.3 No schooling 16.3 14.0 7.2 0.6 0.6 0.2 Some primary 12.5 12.4 11.8 0.2 0.3 0.2 Primary 25.6 20.7 18.4 1.5 2.4 2.3 Lower Second. 21.0 21.1 23.1 15.5 15.0 11.0 Secondary 19.4 28.7 33.8 58.5 64.3 62.1 University 1.5 3.1 4.6 12.6 17.4 23.6 Other 3.1 0.0 1.2 7.1 0.0 0.6 15-24 10.1 10.0 12.8 14.3 11.8 10.9 25-34 35.8 33.8 31.3 29.7 28.3 23.3 35-44 31.0 31.7 28.8 27.4 28.4 27.4 45-54 16.4 18.3 19.6 20.1 21.4 23.8 55-65 6.6 6.2 7.5 8.6 10.2 14.6 Female 41.0 42.0 43.6 42.8 44.2 45.5 Single 37.4 36.3 42.1 20.4 19.3 21.1 Married 56.0 56.9 51.1 70.4 72.0 71.4 Separated 3.7 3.6 3.0 7.4 7.0 5.7 Widowed 2.9 3.2 3.8 1.8 1.7 1.7 Head 57.8 58.8 57.2 55.1 52.1 51.1 Spouse 16.2 16.4 15.0 28.4 28.9 29.8 Disabled 7.3 3.3 2.0 2.5 1.9 1.5 Native 88.8 93.6 93.6 87.2 89.8 90.8
Table 1. Workers’ characteristics by race
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APPENDIX
Figure 1. White-Black segregation curves Figure 2. White-Black segregation indices Gini Dissimilarity Census (IPUMS-I) Occupations sorted by white/black ratio
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Figure 2. White-Black segregation indices Gini Dissimilarity LFS (PALMS)
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Figure 3. White-Black concentration curves 1996 2001 2007 Figure 4. White-Black segregation and concentration curves Occupations sorted average earnings (income)
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STATS SA (2014), Poverty Trends in South Africa: An examination of absolute poverty between 2006 and 2011
accumulation of disadvantages among Africans (Gradín, 2013, 2014). – Education, occupation, demographic structure, area of residence – Especially important: family background (education/occupation of parents). – Progress made in the educational and labor market outcomes of black Africans after apartheid explains the reduction in the racial poverty differential.
and flows of the Xhosa and the Zulu with respect to the Sotho/Tswana (Gradín, 2015). – Also largely associated with an accumulation of disadvantages. – Increased after apartheid, especially in the case of the Zulu.
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Poverty rate
Gap in poverty rates between black Africans and whites
Poverty rate
Source: Gradín (2013)
Poverty rate
Gradín (2014): PL=60% median income US: 24 pp (65% explained), Brazil: 19 pp (75% explained), South Africa : 31 pp (83% explained).
– Large but declining gap in attained education with whites having levels comparable with those of developed countries and Africans being closer to the developing world. (Chisholm, 2004). – Lower intergenerational education mobility of blacks (Nimubona and Vencatachellum, 2007). – Gap in quality, starting at primary schools, with South African schools generally performing worse than neighbor countries despite their larger amount of resources (van der Berg, 2007).
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White-Black segregation curves Occupations indexed by whites/blacks ratio
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Occupations indexed by average earnings (income) White-Black concentration curves IPUMs-I: 1996 and 2001 censuses; 2007 CS (Gradín, 2017a)
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Source: STATS SA (2017), Living Conditions of Households in South Africa, LCS 2014/15 19% 35% 56% 100%
Large racial inequalities in living conditions (income, consumption)
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Source: STATS SA (2017), Living Conditions of Households in South Africa, LCS 2014/15 21% 39% 61% 100%