Integration into the South African core economy: household‐level covariates

Figures & data

Households with numbers of main income earners by main income definitions and by various cut‐off contribution levels (n = 21 032)

Main income's contribution to total household income	Households fitting the definition	Number of contributors to main income
		1	2	3	4	5	Sum
50%	84,5%	71,7	23,6	3,6	1,0	0,1	100,0
67%	70,7%	70,8	24,2	3,9	1,0	0,1	100,0
75%	63,5%	70,3	24,5	3,9	1,1	0,2	100,0
90%	45,8%	71,0	24,2	3,7	1,0	0,1	100,0
100%	25,1%	73,0	23,0	3,2	0,7	0,1	100,0
Source: StatsSA OHS/IES95, own computations, weighted figures.

Distribution of main income sources in the sample by location

Main income source	Urban	Non‐urban	Total
Core sectors	77,7	42,2	57,6
Primary sectors	1,4	14,1	8,8
Domestic services	3,1	2,9	3,0
Public transfers	14,3	27,0	21,9
Private transfers	3,5	13,9	8,7
Total	100,0	100,0	100,0
N	7·394	7·272	14·621
Source: StatsSA OHS/IES95, own computations, weighted figures.

Distribution of main income sources among non‐urban households by household income deciles (n = 7 227)

			Income source category
		Marginal		Peripheral
Non‐urban decile	Core sectors	Primary sectors	Domestic Service	Public transfers	Private transfers	Total
1	3,1	22,4	35,2	35,8	32,0	19,6
2	4,3	24,6	18,7	25,4	26,5	16,4
3	6,6	19,3	15,4	20,1	17,4	13,8
4	12,5	15,7	13,1	11,9	10,1	12,5
5	18,5	7,9	9,4	4,0	7,5	11,3
6	16,7	6,2	4,7	1,5	4,1	9,0
7	15,9	2,8	1,4	0,6	2,0	7,6
8	12,4	0,9	1,7	0,3	0,3	5,5
9	6,8	0,2	0,0	0,3	0,3	3,0
10	3,2	0,0	0,4	0,0	0,0	1,4
Sum	100,0	100,0	100,0	100,0	100,0	100,0
Source: StatsSA OHS/IES95, own computations, weighted figures.

Distribution of main income sources among urban households by household income deciles (n = 7 394)

	Income source category
Urban Decile	Core sectors	Primary Sectors	Domestic service	Pubilc transfers	Private transfers	Total
1	1,6	20,9	20,3	28,2	33,8	7,4
2	2,4	20,2	19,2	21,8	23,0	6,7
3	4,7	10,8	22,3	23,3	13,4	8,3
4	8,6	17,2	17,1	13,1	12,8	9,8
5	13,0	11,0	10,2	6,4	8,6	11,8
6	15,9	10,4	7,5	2,6	3,8	13,2
7	17,5	7,3	2,9	2,4	2,3	14,2
8	17,4	0,2	0,5	0,7	0,8	13,7
9	13,1	1,0	0,0	1,1	1,0	10,4
10	5,7	1,0	0,0	0,3	0,4	4,5
Sum	100,0	100,0	100,0	100,0	100,0	100,0
Source: StatsSA OHS/IES95, own computations, weighted figures.

Number of non‐main income sources by main income source (n = 14 772)

	Main income source
Number of non‐main incomes	Core sector	Primary Sector	Domestic services	Public transfers	Private transfers	Sum
0	86,6	97,0	89,3	95,0	96,9	90,2
1	11,3	2,7	7,4	4,4	2,4	8,3
2	1,7	0,4	2,4	0,5	0,2	1,2
3 or more	0,4	0,0	0,9	0,2	0,6	0,3
Sum	100,0	100,0	100,0	100,0	100,0	100,0
Source: StatsSA OHS/IES95, own computations, weighted figures.

Number of contributors to main income by main income source (n = 14 772)

	Main income source
Number of earners	Core sector	Primary Sector	Domestic services	Public transfers	Private transfers	Sum
1	68,0	69,5	82,4	68,3	92,5	70,8
2	25,7	24,7	15,2	28,7	6,0	24,2
3 or more	6,3	5,8	2,4	3,0	1,5	5,0
Total	100,0	100,0	100,0	100,0	100,0	100,0
Source: StatsSA OHS/IES95, own computations, weighted figures.

Adults' labour force status by households' main income source (n = 66 841)

	Non‐participants in labour force				Labour force status among participants
Main income source	Enrolled	Retired	Other	Total	Unemployed	Self‐employed	Employed	Sum	Share of all adults
Core	21,2	1,1	4,4	28,7	14,9	4,7	80,3	100	60,4
Primary	11,7	0,2	2,4	17,2	6,4	0,1	93,5	100	6,7
Domestic	28,3	0,9	6,2	39,3	45,1	6,6	48,3	100	2,5
Public transfers	31,7	10,5	22,6	69,7	93,5	1,3	5,2	100	22,9
Private transfers	47,1	0,9	11,3	65,2	95,5	0,9	3,6	100	7,4
Total	23,8	2,6	7,7	34,1	24,5	3,9	71,6	100	100
Source: StatsSA OHS/IES95, own computations, weighted figures.

Summary statistics of explanatory variables

	Non‐urban subsample			Urban subsample
Variable	N	Mean	Std dev.	Median	Min.	Max.	N	Mean	Std dev.	Median	Min.	Max.
African	7227	0,93787	0,24140	1	0	1	7394	0,71788	0,45006	1	0	1
Number of non‐earners	7227	3,54103	2,65037	3	0	28	7394	2,89099	2,27835	3	0	24
Western Cape	7227	0,03999	0,19595	0	0	1	7394	0,15810	0,36486	0	0	1
Eastern Cape	7227	0,26346	0,44054	0	0	1	7394	0,17758	0,38218	0	0	1
Northern Cape	7227	0,02767	0,16405	0	0	1	7394	0,05937	0,23634	0	0	1
Free State	7227	0,05618	0,23028	0	0	1	7394	0,12794	0,33405	0	0	1
KwaZulu‐Natal	7227	0,18915	0,39166	0	0	1	7394	0,11901	0,32383	0	0	1
North West	7227	0,09852	0,29804	0	0	1	7394	0,08480	0,27860	0	0	1
Gauteng	7227	0,02242	0,14804	0	0	1	7394	0,17568	0,38058	0	0	1
Mpumalanga	7227	0,13754	0,34444	0	0	1	7394	0,05613	0,23018	0	0	1
Limpopo	7227	0,16508	0,37127	0	0	1	7394	0,04138	0,19919	0	0	1
Subregion 1 non‐urban: ‘semi‐Town’/urban: ‘informal dwellings’	7227	0,05189	0,22182	0	0	1	7394	0,08791	0,28318	0	0	1
Subregion 2 non‐urban: ‘town without local authority/urban: ‘hostels’	7227	0,05936	0,23632	0	0	1	7394	0,04274	0,20228	0	0	1
Subregion 3 non‐urban: ‘tribal area’	7227	0,56441	0,49587	1	0	1	Not defined for urban sample
Subregion 4 non‐urban: ‘agricultural or amenities area’	7227	0,22707	0,41896	0	0	1
Share of earners female	7227	0,42777	0,44530	0,5	0	1	7394	0,42041	0,41892	0,5	0	1
Share of earners in education	7227	0,27615	0,43380	0	0	1	7394	0,11458	0,30608	0	0	1
Category: none
Share of earners in education	7227	0,45702	0,47909	0	0	1	7394	0,38386	0,45893	0	0	1
Category: primary
Share of earners in education Category: secondary	7227	0,14667	0,33760	0	0	1	7394	0,23388	0,39031	0	0	1
Share of earners in education Category: matriculated	7227	0,06111	0,22508	0	0	1	*
Share of earners in education Category: tertiary			*				7394	0,11248	0,29892	0	0	1
Share of earners in age category: ≤ 19 years	7227	0,00830	0,09074	0	0	1	*
Share of earners in age category: ≤ 24 years			*				7394	0,02637	0,16025	0	0	1
Share of earners in age category: 20–24 years7227	7227	0,03003	0,17067	0	0	1	*
Share of earners in age category: 25–34 years	7227	0,21295	0,38875	0	0	1	7394	0,27130	0,41311	0	0	1
Share of earners in age category: 35–59 years	7227	0,48871	0,47703	0,5	0	1	7394	0,52334	0,465214	0,5	0	1
Share of earners in age category: 60–64 years	7227	0,06741	0,23292	0	0	1	7394	0,04761	0,19823	0	0	1
Share of earners in age category: ≥ 65 years	7227	0,15533	0,34845	0	0	1	7394	0,09157	0,27676	0	0	1
Share of non‐earners children	7227	0,41124	0,33924	0,44444	0	1,5	7394	0,38215	0,34897	0,4	0	3
Share of adult non‐earners	7227	0,17754	0,32347	0	0	1	7394	0,21071	0,35339	0	0	1
Unemployed
Share of adult non‐earners inactive	7227	0,51112	0,45124	0,5	0	1	7394	0,43263	0,44312	0,33333	0	1
Share of adult non‐earners retired	7227	0,02861	0,12838	0	0	1	7394	0,03974	0,16016	0	0	1
Notes: * The two specifications differ in category variables left out to avoid multicollinearity. In both samples the earner age category 60–64 years and the fraction of non‐earners in employment were left out. However, in the non‐urban sample the matriculated education category was left out whereas in the urban sample tertiary education was omitted. For similar reasons the two youngest earner age categories in the urban subsample were collapsed into one category.

Multinomial logit estimates of main income category for non‐urban households

Number of observations 7227
Wald χ^2 (132) 8481,75
Prob. > χ^2 0,0000
Pseudo‐R^2 0,46530
Log pseudo‐likelihood −5292,4811
Explanatory variables	Primary sectors	Domestic services	Public transfers	Private Transfers
Number of non‐earners	0,40269***	0,63699**	0,69266***	0,64107***
African	1,95325	0,61823	0,99315	6,20648**
Western Cape (‡‡)	0,66125	0,28560*	0,41992*	0,22745*
Eastern Cape	1,35777	0,78995	2,04318***	2,92144***
Northern Cape	2,56191**	0,59466	0,46335*	1,04375
Free State (‡‡)	1,54488	1,08210	0,84746	1,88100
North West	1,12546	0,27480***	0,50335***	1,74649**
Gauteng	0,42690**	1,10011	0,35069**	0,00000***
Mpumalanga	2,16795**	1,26062	0,36272***	0,48242***
Limpopo	2,48950**	0,69581	0,86055	1,21457
‘Semi‐town’ (‡‡)	0,30623*	0,49497	1,80941	1,51507
‘Town’	0,86912	1,88772	2,91000***	2,18790*
‘Tribal area’	0,16712***	0,84164	1,95046**	2,42624**
Agricultural/amenities area	9,40751***	4,39276***	1,95114**	0,55195
Share of main income earners	0,13286***	20,71139***	2,38631***	4,37819***
(Sh. MIE) female
Sh. MIE no education	161,46310**	83,64364***	70,94666***	72,08230***
Sh. MIE primary education	101,36020***	75,11304***	30,36159***	35,88247***
Sh. MIE secondary education	29,89462***	25,72992***	10,33534***	19,82048***
Sh. MIE matric education	9,07762***	3,94063	1,53559	6,52037***
Sh. MIE≤19 years	1,61322	2,76234	1,81192	35,24345***
Sh. MIE 20–24 years	1,07565	2,08541	0,12926***	3,92955***
Sh. MIE 25–34 years	0,19222***	0,64582	0,01194***	0,48177*
Sh. MIE 35–59 years	0,30040***	0,68831	0,06612***	0,61308*
Sh. MIE≥65 years	0,42824*	0,60990	7,99522***	0,79091
Share of non‐main income earners (Sh. NMIE)≤14 (§)	369169,90***	29,29530	109,61080**	791,6230***
Sh. NMIE unemployed (§)	9,49793**	5,04592	5,19879*	0,53000
Sh. NMIE inactive (§)	13,98190***	2,35612	2,77849*	4,26535**
Sh. NMIE retired	0,38287**	0,40104	0,41879**	0,03984***
χ^2 value Hausman test of IIA	−11,684	−48,962	19,289	−29,622
when category is omitted	Supported	Supported	Supported	Supported
Notes: Symbols: (†)/(‡) Wald test H(0): variables all coefficients = 0, not rejected at 5 or 10 per cent. (§) Endogenous, observed variable replaced by prediction. Significance levels are based on standard errors that take the clustered nature of the sample into account. Source: StatsSA OHS/IES95, own computations, weighted data.

Multinomial logit estimates of main income category for urban households

Number of observations 7394
Wald χ^2 (132) 7456,21
Prob. > χ^2 0,0000
Pseudo‐R^2 0,4151
Log pseudo‐likelihood −3287,0091
Explanatory variables	Primary sectors	Domestic services	Public transfers	Private Transfers
Number of non‐earners	0,91432	0,925926	0,95905	0,89340**
African	1,04992	1,632152**	0,78297	2,96949***
Western Cape (†)	5,95991***	0,855529	1,16850	0,71978
Eastern Cape	2,12973	0,873331	2,37955***	2,85653***
Northern Cape	7,56284***	2,168811*	3,34436***	3,81096***
Free State	1,31239	1,416153	2,03931***	2,85198***
North West (‡‡)	4,78987*	0,600125	1,08411	1,10442
Gauteng	0,47306	1,068179	0,51492**	0,25044***
Mpumalanga	7,32566***	0,841719	0,71261	0,53572
Limpopo	35,25985***	0,105925**	0,95059	1,06688
‘Informal dwellings’	3,08046**	1,704814**	1,38963*	0,99245
‘Many hostels’	0,03670***	0,054554***	0,06080***	0,27563
Share of main income earners	0,96613	17,53389***	4,34963***	6,17050***
(Sh. MIE) female
Sh. MIE no education	19,12191***	20,78237***	31,98307***	5,44395***
Sh. MIE primary education	11,02114***	12,75822***	10,58078***	3,96337***
Sh. MIE secondary education	5,58107***	3,882472***	4,89480***	2,25146***
Sh. MIE matric education	0,00000***	1,61E‐01	1,16208	0,16442***
Sh. MIE≤24	1,94605	5,108697**	0,25153***	7,95197***
Sh. MIE 25–34	0,74982	2,87273**	0,04808***	1,12336
Sh. MIE 35–58	0,42178**	2,299924*	0,12671***	0,95745
Sh. MIE≥65	0,52508	2,329331	23,83244***	3,13204*
Share of non‐main income earners (Sh. NMIE)≤14	0,90525	0,344943***	0,57190***	0,86880
Sh. NMIE unemployed (‡‡)	0,45602*	0,623586	1,03930	0,93292
Sh. NMIE inactive	0,81788	0,538909**	0,56167***	0,72891*
Sh NMIE retired	0,05840**	0,163018**	0,15467***	0,20707*
χ^2 value Hausman test of IIA	−16,664	14,161	1203,949	−47,451
when category is omitted	Supported	Supported	Not supported	Supported
Notes: Significance levels are based on standard errors that take the clustered nature of the sample into account. Symbols: (†)/(‡) Wald test H(0): variables all coefficients = 0, not rejected at 5 or 10 per cent. (§) Endogenous, observed variable not replaced by prediction. Source: StatsSA OHS/IES95, own computations, weighted data.

Simulation of impact from main income earner's gender and age

	Probabilities of main income categories
Earner	Primary sector	Domestic services	Public transfers	Private transfers	Core sector
Male aged 35–59	10,4	0,6	9,9	22,6	56,5
Female aged 35–59	0,7	6,1	12,3	51,4	29,4
Female aged 25–34	0,6	7,3	2,8	51,7	37,6
Female aged 60–64	0,8	2,8	60,0	27,0	9,4
Male aged 25–34	8,0	0,6	2,2	21,3	67,9
Male aged 60–64	12,4	0,3	53,9	13,2	20,3

Simulation of impact from main income earner's education and non‐urban households' subregional location

		Probabilities of main income categories
Education	Location	Primary Sector	Domestic services	Public transfers	Private transfers	Core sector
None	‘Tribal area’	0,7	4,0	17,0	61,0	17,4
Primary	‘Tribal area’	0,7	6,1	12,3	51,4	29,4
Secondary	‘Tribal area’	0,3	3,2	6,5	44,2	45,7
None	‘Agricultural/amenities area’	35,5	19,5	15,9	12,9	16,2
Primary	‘Agricultural/amenities area’	32,2	25,3	9,8	9,3	23,4
Secondary	‘Agricultural/amenities area’	19,0	17,3	6,7	10,3	46,8

Simulated impact from urban households' provincial location

	Probabilities of main income categories
Province	African	Earner	Primary Sector	Domestic services	Public transfers	Private transfers	Core sector
KwaZulu‐Natal	Yes	M	0,8	0,2	15,1	1,6	82,3
KwaZulu‐Natal	Yes	F	0,5	2,3	40,5	6,0	50,7
Eastern Cape	Yes	F	0,6	1,2	57,6	10,3	30,3
Northern Cape	No	F	1,4	1,3	72,8	3,3	21,3
Gauteng	No	F	0,3	1,9	33,5	0,6	63,7
Gauteng	No	M+F	0,2	0,2	9,0	0,2	90,4

Simulated impact from non‐earner household characteristics

			Probabilities for main income categories
Age of female earner	No. of children	Adults	Primary sector	Domestic services	Public transfers	Private transfers	Core sector
20–24	2	2 inactive	0,2	6,5	6,8	69,9	16,5
20–24	3	1 inactive	0,6	4,6	6,0	81,6	7,3
20–24	3	1 retired	0,7	7,4	9,4	64,1	18,4
60–64	3	1 inactive	0,8	2,8	60,0	27,0	9,4
60–64	3	1 unemployed	0,7	3,4	70,3	16,0	9,5
60–64	2	2 unemployed	0,2	4,6	72,4	6,3	16,5