After J.T., arguably the second most important individual studied by Venkatesh in Gang Leader for a Day is Ms. Bailey.
Who is Ms. Bailey, and giving examples from the book, what are some ways that she has so much power in the community?
While social grants in South Africa have had the impact of alleviating poverty for this part of the population they have had no contribution towards reducing inequality. Inclusion can only be created through active participation in the economy. Ultimately, the labour market lies at the centre of the country’s challenges of poverty and inequality. 3. UNEMPLOYMENT IN SOUTH AFRICA According to Statistics South Africa (Stats SA); South Africa’s unemployment rate as recorded in the fourth quarter for 2013 is 24.1%. Stats SA also notes that unemployment levels have been fluctuating as reflected by their quarterly Labour Force Survey. Despite the fluctuations the data shows a strong upward trend. In the period between 2008 and 2013; the lowest level of unemployment was in the fourth quarter of 2008 observing 3.9 million unemployed people and the highest was observed in the second quarter of 2013 recording 4.7 million unemployed people (Stats SA Quarterly Labour Force Survey). Figure 4 According to economists, unemployment arises when the supply of labour exceeds the demand for labour. This oversupply of labour is described as a failure of the market to clear or to ‘reach equilibrium’ (Nattrass 1996: 17) The South African scenario is no different. From the supply side; the actual number of people entering the labour market and are looking for work has risen sharply. The number of people in with little or no skills is also very high because of the historically low investments in education and persistent challenges to education. On the demand side; South African firms are undergoing a ‘skills-biased technical change’ which increasingly calls for skilled rather than unskilled labour (Nattrass 1996: 22). In South Africa the unabated move towards mechanization in the mining sector is a prime example of this change. We unpack the changes in the economy and the labour market in detail later. As a point of departure on this note it is important to note that to decisively reduce inequality and lift more people out of poverty; more people need to work. The structure of South Africa’s economy, and particular the labour market, is a big driver of inequality (May, 2000). May goes on to explain that in South Africa wage income accounts for 70% of total income and makes a contribution of 85% to income inequality. These numbers are best reflected in the inequality that exists amongst wage earners. The labour market is going through a change that increasingly demands high-skill workers (attracting high skill wages) at a faster pace than lower-skilled workers. At least a third of wage inequality is directly linked to the large share of households that have no workers and therefore have no wage income (DPME 2014). Pe>GET ANSWER