Abstract

Orientation: Day labouring is becoming more frequent in developing countries. Long spells of unemployment and the uncertainty of informal wage employment impact negatively on the subjective well-being (SWB) of day labourers. Research purpose: The aim of the article was to investigate the level and possible determinants of the SWB of day labourers in Pretoria and Windhoek. Motivation for the study: Up to now, only one study has been carried out in South Africa on the SWB of day labourers and none in Namibia. This study aimed to start filling this gap in the literature. The choice of the two cities was based on their status as the capital cities of two countries that are both experiencing increasing numbers of day labourers. Research design, approach and method: A mixed-method research design and purposeful sampling were used to obtain representative samples. Data were sourced from comparable surveys amongst day labourers in the two cities between 2015 and 2017. Questionnaires with quantitative and qualitative sections were completed during structured interviews with 290 and 80 day labourers in Pretoria and Windhoek respectively. The ordinary least squares model and ordered-probit analysis were employed to analyse the data. Main findings: In Pretoria, the number of dependents, the living conditions and whether they had a full-time job before were all significant in explaining the SWB of the day labourers. In Windhoek, education levels, total days without food, staying with their families and being a foreigner were also significant. Practical/managerial implications: The needs of the informally employed must be addressed in the integrated development plans of municipalities and integrated with day labour worker centres. Contribution/value-add: This is the first study to analyse SWB amongst day labourers in Namibia and lays the foundation for future expanded studies.

Highlights

  • Persistent high levels of unemployment have been a constant theme of the South African macroeconomic environment over many years

  • The objective of this study was to investigate the determinants of the subjective well-being (SWB) of the day labourers in Pretoria and Windhoek

  • Because of the limited research on this topic, this study aimed to make a contribution to fill the gap that exists within the SWB literature, focusing on the informal economy

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Summary

Introduction

Persistent high levels of unemployment have been a constant theme of the South African macroeconomic environment over many years. According to the official definition of unemployment, the latest figure puts unemployment in South Africa, which is the 103rd happiest country in the world, at 29.1% in the fourth quarter of 2019. Youth unemployment is more than 50% (Helliwell, Huang & Wang 2019; Statistics South Africa 2020). These are the highest levels of unemployment since 2008 and the onset of the world financial crisis. The expanded definition of unemployment, which includes those who are no longer looking for work, is 38.5%. This represents more than 10 million people (Statistics South Africa 2020). The Namibian unemployment rate (measured using the same definition) was even higher at 33.4% in 2018 (Tradingeconomics 2019)

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