Low-wage employment

Abstract

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Employed yet poor: low-wage employment and working poverty in South Africa

“…The second definition sets the low-wage threshold "based on a percentage of the median or average wage for the economy" (Grimshaw, 2011 p. 3). The most standardised relative measure of low-wage employment, endorsed by the Organisation for Economic Co-operation and Development (OECD), is a benchmark of two-thirds of the median wage in the base year for all workers in the market (Eardley, 1988;OECD, 1996;Cuesta and Salverda, 2009;Grimshaw, 2011;Oosthuizen, 2012;Schmitt, 2012;OECD, 2015;Schnabel, 2016). Other percentages may however be used, such as one half (50%) of the median wage.…”

“…In other words, low-wage employment may be "a stepping-stone to a better job" or it may lead to continuous low-pay work or unemployment. We thus turn to Stewart (2007) and Schnabel (2016) to investigate this issue further. Stewart (2007) investigates the relationship between unemployment and low-wage employment, particularly the extent of the impact that low-wage jobs may have on future job prospects, unemployment and continuous unemployment (utilising the British Household Panel Survey).…”

“…Similarly, Schnabel (2016) discusses the nature of low-wage employment (whether it is temporary or continuous) in OECD countries, drawing on data and findings from multiple sources and other studies. The author highlights that workers can get "trapped" in low-wage employment, particularly because education and skills development opportunities are limited in low-paying jobs (Schnabel, 2016 p. 3).…”

“…to 2014. As indicated by Stewart (2007) and Schnabel (2016), workers may get trapped in lowpaying jobs, which often lead to future unemployment. to an increased number of dependent household members (children and unemployed adults) or lowered income.…”

“…This chapter presents the empirical findings for this study. 1995, LFS 2000, QLFS 2010-2016and NIDS 2008-2014. Persons who are both low-wage employed and poor are presented in Table 4.4 below.…”