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Background: At 27.2% in the second quarter of 2018 the official unemployment rate in South Africa ranks as one of the highest in the world. However, depending on whether one uses the official or broad definition of unemployed, since 2008 there are on average between 2 and 3.3 times as many unemployed people as there are people in the informal sector. Aim: This article seeks to explore empirically, using time-series data, the extent to which an increase in the number of unemployed leads to increased entry of workers into the informal sector. Method: We use a Markov-switching vector error correction model. Results: We find that such entrance is very limited, lending credence to the notion that significant entry barriers exist into the informal sector. Conclusion: From a policy point of view these results suggest the need to consider measures that will ease entrance into the informal sector.

Background: South Africa suffers from an unusually high unemployment rate – officially averaging 25% since 1999Q3. In addition, depending on whether one uses the official or broad definitions of unemployment, since 2008 there are on average between 2 and 3.3 times as many unemployed people as there are people in the informal sector. Hence the question: why do the unemployed not enter the informal sector to create a livelihood? Aim: To fill this gap we propose a macroeconomic framework that incorporates both formal (primary) and informal (secondary) sectors, as well as involuntary unemployment resulting from entry barriers to the labour market. We believe such a model provides a more suitable basis for macroeconomic policy analysis. Setting: Standard macroeconomic theories at best provide a partial explanation for the South African unemployment problem, focusing mostly on the formal sector. Methods: The article uses a theoretical analysis. Results: The article presents a macroeconomic framework that incorporates both formal (primary) and informal (secondary) sectors, as well as involuntary unemployment resulting from entry barriers to the labour market. Conclusion: If the assumptions on which the model draws hold in the South African reality, then a solution to the unemployment problem involve policies addressing product and labour market structures and behaviour in the primary sector, as well as policies addressing the numerous barriers to entry, such as borrowing constraints, that potential entrants into the secondary sector face.

Emerging economies are characterized by higher consumption and real wage variability relative to output and a strongly countercyclical current account. A real business cycle model of a small open economy that embeds a Mortensen-Pissarides type of search-matching frictions and countercyclical interest rate shocks can jointly account for these regularities. In the face of countercyclical interest rate shocks, search-matching frictions increase future employment uncertainty, improving workers' incentive to save and generating a greater response of consumption and the current account. Higher consumption response in turn feeds into larger fluctuations in the workers' bargaining power while the interest rates shocks lead to variations in the firms' willingness to hire; both of which contribute to a highly variable real wage.

We aimed to investigate the influence of unobserved individual characteristics in explaining the effects of work-related factors on full (fSA) and part-time sickness absence (pSA). We used register-based panel data for the period 2005-2016 on a 70% random sample of the Finnish working-age population. The relationships between employment sector and occupational exposures (% exposed to physically heavy work and job control score based on job exposure matrices) and the annual onset of fSA and pSA were investigated among men and women. First, random effects (RE) models were applied controlling for observed sociodemographic factors and then fixed effects (FE) models that examine within-individual changes over time and thereby further account for unobserved time-invariant individual characteristics. In the RE analyses, public employment sector, physically heavy work and lower job control each increased the use of fSA and pSA among both genders. When unobserved individual characteristics were controlled for with the FE models, the effects on fSA attenuated. For pSA, the effects of employment sector and physical heaviness of work among women even reversed. The effect of lower job control on pSA remained especially among women. The role of individuals' unobserved characteristics in explaining the effects of work-related factors on SA should not be neglected. The effects of work-related factors are likely to be overestimated when using traditional approaches that do not account for unobserved confounding, ie, selection of individuals with a high likelihood of SA into particular work environments.

Background: Personal perspective concerning work demands directly impacts quality health care and patient satisfaction. Little is known about job satisfaction amongst dietitians and nutritionist, while workload has not previously been studied in this population. Methods: A descriptive cross-sectional study was performed using an online questionnaire. Data were collected on sociodemography. Job satisfaction was measured with Spector’s Job Satisfaction Survey (JSS) (including an added subscore for resource availability) and workload with the National Aeronautics and Space Administration Task Load Index (NASA-TLX). Results: Respondents (n = 238) had a median age of 32.0 years (IQR: 27−39 years); 92.4% were female; 95.7% were dietitians, 2.4% were nutritionists and 18.9% had a postgraduate degree. Respondents had practised the profession for a median of 8 years (IQR 3−15 years), and 225 were in dietetic and nutrition-related jobs. Median scores indicated that they were slightly satisfied with their jobs (n = 224) and experienced slightly high workload (n = 224). Most respondents were moderately satisfied with the nature of their work and found it rewarding. The median scores for salaries, promotion opportunities, work environment and availability of resources were low. Total JSS was higher in older and more experienced dietitians and nutritionists than in younger ones (p < 0.05). Those employed in the government sector (n = 100) experienced higher physical demands and levels of frustration, and had lower JJS than those employed elsewhere (n = 124), particularly regarding promotion opportunities and resources availability. Conclusion: Despite being generally positive towards practising their profession, South African dietitians and nutritionists, particularly in the public health sector, experienced only slight job satisfaction, related to salary and promotion issues and lack of resources, and were slightly overworked. Understanding the factors that shape perceptions of work within nutrition and dietetics may assist managers in recruiting and retaining a highly skilled workforce, particularly in developing countries with overburdened healthcare systems.

Using information from all International Monetary Fund conditionality programmes from 1990 to 2018, we implement a dynamic Augmented Inverse Probability Weighting Regression Adjustment approach to enquire whether public-sector employment retrenchment may be incompatible with the goal of shrinking the informal economy. The estimated effect 5 years after the policy intervention indicates an increase in the share of the shadow economy to GDP by about 1.3 percentage points. More importantly, this change involves a sizable reallocation of private economic activity from its formal to its informal part; that is, the size of the formal private sector relative to the size of the informal sector decreases by seven percentage points. We interpret these findings through a two-sector model in which there is interdependence between worker incomes and the allocation of product demand across the formal and informal sectors.

The increasing prevalence of private-sector work among doctors raises questions about its impact on their health and wellbeing. While private practice may offer autonomy and financial benefits, it presents unique psychosocial risks that are less understood. This study investigates the relationship between private-sector work, psychosocial working conditions, and burnout among doctors, and examines whether access to health and wellbeing resources changes these relationships. A cross-sectional survey with 509 doctors from 16 countries working either exclusively or partially in private practice assessed psychosocial risk factors (e.g., work demands, financial pressures, support, job control), and burnout, alongside access to and use of wellbeing resources. Results showed that more time in private practice was associated with higher work and financial demands, bullying, and burnout. Although access to health and wellbeing resources was initially linked to lower burnout, this relationship was not significant when psychosocial risk factors were accounted for. These findings suggest that support mechanisms are often reactive and insufficient in mitigating the impact of systemic demands. The study highlights the need for private healthcare employers to recognise their role in developing healthy work environments, and for organisational-level interventions to address the root causes of poor health and wellbeing among doctors in this sector.

In many countries, the structure of wages and the labor law legislation are completely different for public and private sector employees. In this paper, we develop a general equilibrium overlapping generations model to study the effect of such differences on household savings and labor supply. To conduct our analysis, first we use microdata from two Brazilian household surveys to document that civil servants save and work significantly less than their counterparts in the private sector. Second, we use matched employer–employee microdata from Brazil (RAIS) to document differences between the two sectors in terms of wage and unemployment risk. Then, we calibrate the model to be consistent with micro and macro evidence for Brazil. Our counterfactual exercises show that differences in wages characteristics and labor law legislation account for nearly 70% of the gap in savings between civil servants and private sector workers, and 57% of the gap in labor supply. In addition, we find that eliminating those differences can produce sizable increase on aggregate savings, employment, and welfare.

Saudi Vision 2030 is a strategic goal that aims to diminish Saudi Arabia’s dependence on oil and diversify its economy, which requires considering the agricultural sector a target sector (among others). The agricultural sector represents the backbone of food security. This research aimed to assess the influence of the industrial sector, employment, and service sector on the agricultural sector in Saudi Arabia. Secondary data for the period from 1991 to 2022 were collected and analyzed using the ARDL model test, vector error correction, the Granger causality test, and multiple regression models. In addition, an impulse test was used to highlight the leading variables among all the variables under study, and quantitative analysis was performed to assess the impact of growth sectors on food security. The results point to the existence of long-term integration between the variables. Industrial and employment factors negatively affected food security (value-added agriculture), while the service sector had a positive effect. Based on the results of this study, the following recommendations were drawn: Policymakers should invest in technology and mechanization to fulfill labor requirements and enhance agricultural education and training. Integrated development plans should be adopted through design policies that combine agricultural and industrial growth, such as agro-processing industries, which add value to agricultural products. Dual-sector development strategies should be established to encourage exchange between sectors by fostering linkages, such as supplying industrial support for agricultural mechanization and irrigation.

What effects do International Monetary Fund (IMF) loans have on borrowing countries? Even after decades of research, no consensus exists. We offer a straightforward explanation for the seemingly mixed effects of IMF loans. We argue that different loans have different effects because of the varied conditions attached to IMF financing. To demonstrate this point, we investigate IMF loans with and without conditions that require public sector reforms in exchange for financing. We find that the addition of a public sector reform condition to a country’s IMF program significantly reduces government spending on the public sector wage bill. This evidence suggest that conditions are a key mechanism linking IMF lending to policy outcomes. Although IMF loans with public sector conditions prompt cuts to the wage bill in the short-term, these cuts do not persist in the longer-term. Borrowers backslide on internationally mandated spending cuts in response to domestic political pressures.