Masters Degrees (Economics)

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Browsing Masters Degrees (Economics) by Author "Brits, Anne-Marie"

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    The development of labour market institutions in Namibia
    (Stellenbosch : Stellenbosch University, 1999-11) Brits, Anne-Marie; Van der Berg, Servaas; Stellenbosch University. Faculty of Economic and Management Sciences. Economics.
    ENGLISH SUMMARY: Wage levels and employment are influenced by a number of factors, the individual effect of which is difficult to isolate. The influence of institutional factors such as labour market policies and legislation is, however, often disregarded or underestimated. This study highlights the importance of labour market institutions as one of the factors influencing wage levels and employment. The study starts off with a review of economic theories posited in order to explain wages and employment, and arrives at the conclusion that there is no universally applicable theory. Although the theory of supply and demand could perhaps be regarded as the most relevant, there are a number of theories that explain wage and employment levels by focusing on different aspects of the employment relationship. Opposing viewpoints regarding the need for government intervention in the economy are then discussed: should the market mechanism be allowed to determine wage levels and levels of employment, as seems to be the popular World Bank perception, or does government have a social and moral obligation towards its citizens to intervene in the labour market, even though such intervention may be regarded as distortionary (the view of the International Labour Organisation?). Some common ground does appear to exist in that there seems to be agreement on the need for some basic form of intervention to ensure "minimum" standards acceptable to society. However, the extent, timing and manner in which governments intervene are of considerable importance. A review of the modem welfare state then provides the basis for the argument that the - - labour market institutions of today are not the result of economic impulses only, but rather the combined outcome of economic, political and social considerations. This is followed by the presentation of country specific evidence regarding collective bargaining, the minimum wage and social security structures in both industrialised and developing countries. Such discussion puts the development of labour market institutions in Namibia into perspective, and serves as basis for comparison. Following the above, detailed evidence regarding the development of Namibian labour market institutions is presented. By addressing labour relations issues such as worker exploitation, the protection of workers, and income inequality, government has attempted to create an environment it believes is conducive to economic growth and, over the medium to longer term,job creation. As many of the institutions reviewed in this study were only introduced or adapted some years after Independence in 1990, it is difficult to arrive at anything more than a general impression regarding their effectiveness in achieving government's objectives, and perhaps still too early to judge institutions solely on their economic impact. Although labour market institutions have contributed to increasing wages and non-wage labour costs, it is extremely difficult to isolate their effect on economic growth and employment. Other than addressing historical political and social problems in the country, labour market- institutions appear to not yet have had a significant impact in terms of encouraging economic growth and job creation in Namibia.