Past research provided evidence of the negative effect that individual unemployment can have on subjective well-being. The persistent high levels of unemployment and poverty in South Africa
INTRODUCTION AND AIM OF THE PAPERhere was a time when the study of well-being, and subjective well-being in particular, was, for the most part, excluded from economic analysis as a result of the disciplinary paradigm of logical positivism. Yet, economic theories often include reference to values, expectations, and the like (Easterlin 2001: 225).Since the 1940s, the landscape has changed and, recently, Helliwell and Barrington-Leigh (2010) have argued that growing awareness is being raised in academic, policy, and public areas to subjective measures of wellbeing. This represents an important shift towards greater realism in the study of economic behaviour. Subsequently, a significant body of literature emerged on the determinants of well-being in developed countries. Recent research findings on well-being in developing countries specifically have added more depth to the development debate (Tiwari 2009: 129).Most studies on subjective well-being in transitional economies focus on either rural areas or gender groups. Prominent scholars in South Africa ensured that South Africa's transitional experience and its influence on well-being form part of this important research agenda (Møller and Schlemmer, 1989;Møller, 1998;Møller and Saris, 2001;Møller and Dickow, 2002;Ebrahim, Botha, and Snowball, 2011;Botha and Booysen, 2011). A constant theme in South African literature is that, in the main, the wealthier testify to higher levels of satisfaction and On the other hand, people in the Eastern Cape, a province with the high levels of unemployment and deep poverty, are principally unhappy, dissatisfied, and pessimistic.Cramm, Møller, and Nieboer (2010: 1013) state that there is a scarcity of research on well-being among the poorest of the poor. As a result, the experiences in terms of the well-being of marginalised groups in the South African labour market have not received sufficient attention in South African research on the subject.Past research results provided evidence of the negative effect that individual unemployment can have on subjective well-being (Winkelmann, 2009: 421). The persistent high levels of unemployment and the severity of absolute poverty in South Africa have been well documented. As a result, many people are forced into the informal economy where they engage a variety of survivalist activities. Offering their labour on street corners and at intersections as day labourers is a pertinent example in this regard. Blaauw (2010) found no pure economic rationale for the sustainability of this activity, given the cost and the low and uncertain levels of income in this market, yet many day labourers have been involved in this activity for many years. Researching the well-being in this informal labour market is an important extension of the research into the employee side of the informal economy. It takes cognisa...