New evidence on subjective well-being and the definition of unemployment in South Africa

Figures & data

Table 1: Average life satisfaction and proportion dissatisfied amongst working-aged adults (ages 15 to 64) in 2008 and 2010/11

		2008	2010/11
Employed	Mean	5.793	5.499
		(0.082)	(0.118)
	% dissatisfied	26.9	33.5
		(0.015)	(0.021)
	N	5 250	4 042
Not economically active	Mean	5.505	4.760
		(0.105)	(0.107)
	% dissatisfied	35.9	48.7
		(0.017)	(0.019)
	N	4 542	6 530
Searching unemployed	Mean	5.159	4.410
		(0.137)	(0.113)
	% dissatisfied	3.95	5.30
		(0.022)	(0.027)
	N	1 657	1 187
African male	Mean	4.942	4.244
		(0.212)	(0.121)
	% dissatisfied	44.5	56.0
		(0.035)	(0.034)
	N	512	413
Ages 15 to 24	Mean	5.514	4.520
		(0.170)	(0.155)
	% dissatisfied	34.2	47.4
		(0.029)	(0.040)
	N	573	447
Ages 25 to 34	Mean	5.155	4.452
		(0.221)	(0.140)
	% dissatisfied	39.3	54.0
		(0.038)	(0.043)
	N	567	373
Non-searching unemployed	Mean	4.991	3.933
		(0.163)	(0.291)
	% dissatisfied	43.4	63.6
		(0.028)	(0.062)
	N	845	635
African male	Mean	4.378	3.445
		(0.396)	(0.303)
	% dissatisfied	54.4	74.5
		(0.066)	(0.075)
	N	160	198
Ages 15 to 24	Mean	5.175	3.935
		(0.291)	(0.344)
	% dissatisfied	41.5	62.4
		(0.047)	(0.078)
	N	289	237
Ages 25 to 34	Mean	4.568	3.768
		(0.264)	(0.298)
	% dissatisfied	50.2	65.9
		(0.040)	(0.069)
	N	228	157

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: Wave-specific cross-sectional weights used for each wave, as well as corrections for survey design. Standard errors are reported in parentheses. Data in italics do not include controls for stratification because the sample included strata with only one cluster.

Table 2: Transition matrix of labour-market status with mean change in satisfaction

	Employment status in 2011
Employment status in 2008	Searching unemployed	Non-searching unemployed	Employed	Not economically active	Total
Searching unemployed	281	103	403	553	1 340
Row %	21.43	6.25	32.51	45.72	100
Mean change	–0.579	–0.798	–0.257	–0.671	–0.531
Non-searching unemployed	113	65	167	364	709
Row %	17.52	9.61	27.16	45.72	100
Mean change	–0.674	0.120	–0.334	–0.408	–0.327
Employed	272	163	2 479	1 069	3 983
Row %	6.79	3.44	68.90	20.87	100
Mean change	–1.555	–1.403	–0.518	–0.592	–0.626
Not economically active	376	216	520	2 722	3 834
Row %	12.18	5.44	15.04	67.34	100
Mean change	–0.773	–1.463	–0.236	–0.633	–0.629
Total	1 042	547	3 569	4 708	9 866
Row %	11.49	4.91	42.37	41.23	100
Mean change	–0.931	–1.130	–0.437	–0.616	–0.592

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: Panel weights as well as corrections for survey design were used in the estimation of this table. Row percentages are reported as well as the mean change in satisfaction (only panel weights were used for the satisfaction estimates).

Table 3 Transition matrix of labour-market status with Wave 1 satisfaction

	Employment status in 2011
Employment status in 2008	Searching unemployed	Non-searching unemployed	Employed	Not economically active	Total
Searching unemployed	281	103	403	553	1 340
Wave 1	4.918	4.305	5.193	5.194	5.082
Non-searching unemployed	113	65	167	364	709
Wave 1	5.051	4.994	4.873	5.407	5.056
Employed	272	163	2 479	1 069	3 983
Wave 1	5.811	4.781	5.313	6.037	5.825
Not economically active	376	216	520	2 722	3 834
Wave 1	5.377	5.563	5.552	5.438	5.508
Total	1 042	547	3 569	4 708	9 866
Wave 1	5.340	5.007	5.851	5.401	5.566

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: Panel weights as well as corrections for survey design were used in the estimation of this table. Row percentages are reported as well as the mean change in satisfaction (only panel weights were used for the satisfaction estimates).

Table 4: Marginal effects for probit estimation of reverse causality, with a dummy variable of Wave 2 labour-market status as the dependent variable

	Unconditional	Conditional
Wave 1 satisfaction (= 1)	0.032***	0.015
	(0.009)	(0.010)
Wave 1 satisfaction (= 2)	0.019**	0.005
	(0.008)	(0.008)
Wave 1 satisfaction (= 4)	–0.013	–0.006
	(0.010)	(0.010)
Wave 1 satisfaction (= 5)	0.006	0.002
	(0.011)	(0.011)
Observations	8 800	8 657
Pseudo R-squared	0.0125	0.0824

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: These estimations make use of the balanced panel together with the NIDS-prescribed panel weights. Robust standard errors are reported. Significance: *10% level, **5% level, and ***1% level.

Table 5: Marginal effects of labour-market status on life satisfaction

	Satisfaction value
	(1)	(2)	(3)	(4)	(5)
Searching unemployed	0.013*	0.009*	–0.002*	–0.010*	–0.009*
	(0.007)	(0.005)	(0.001)	(0.005)	(0.005)
Non-searching unemployed	0.044***	0.028***	–0.009***	–0.033***	–0.030***
	(0.010)	(0.007)	(0.002)	(0.008)	(0.007)
Employed	–0.005	–0.003	0.001	0.004	0.004
	(0.006)	(0.004)	(0.001)	(0.005)	(0.004)
Observations	26 884
Pseudo R-squared	0.0715

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: Cross-sectional post-stratified weights were used in all estimations. Standard errors were adjusted for serial correlation and heteroskedasticity, by clustering at the individual level. Significance: *10% level, **5% level, and ***1% level.

Table 6: Probability of reporting each satisfaction level

	Satisfaction value
	(1)	(2)	(3)	(4)	(5)
Not economically active	15.88	22.93	30.64	19.84	10.72
Searching unemployed	17.25	23.80	30.32	18.82	9.82
Non-searching unemployed	20.65	25.54	29.25	16.55	8.01
Employed	15.36	22.57	30.73	20.24	11.09

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Table 7: Marginal effects of searching state and age cohort on life satisfaction

	Satisfaction value
	(1)	(2)	(3)	(4)	(5)
Non-searching unemployed	0.064***	0.042***	–0.013***	–0.049***	–0.045***
(aged 15 to 29)	(0.013)	(0.008)	(0.003)	(0.010)	(0.009)
Non-searching unemployed	0.008	0.005	–0.002	–0.006	–0.006
(aged 30 to 49)	(0.017)	(0.011)	(0.003)	(0.012)	(0.011)
Non-searching unemployed	0.056*	0.036*	–0.011*	–0.042*	–0.039*
(aged 50 to 64)	(0.031)	(0.020)	(0.006)	(0.023)	(0.021
Searching unemployed	0.010	0.006	–0.002	–0.007	–0.007
(aged 15 to 29)	(0.008)	(0.006)	(0.002)	(0.006)	(0.006)
Searching unemployed	0.009	0.006	–0.002	–0.007	–0.007
(aged 30 to 49)	(0.012)	(0.008)	(0.002)	(0.009)	(0.008)
Searching unemployed	0.068***	0.044***	–0.013***	–0.051***	–0.047***
(aged 50 to 64)	(0.021)	(0.014)	(0.004)	(0.016)	(0.015)
Employed	–0.006	–0.004	0.001	0.005	0.004
	(0.006)	(0.004)	(0.001)	(0.005)	(0.004)
Observations	26 884
Pseudo R-squared	0.0718

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: These estimations make use of a pooled dataset of both Wave 1 and Wave 2 cross-sectional datasets (includes Wave 2 temporary sample members). Cross-sectional post-stratified weights were used in all estimations. Standard errors were adjusted for serial correlation and heteroskedasticity, by clustering at the individual level. Significance: *10% level, **5% level, and ***1% level.

Table 8: Probability of reporting each satisfaction level by age cohort

	Satisfaction value
	(1)	(2)	(3)	(4)	(5)
Non-searching youth	22.82	28.08	29.48	14.00	5.62
Non-searching senior	20.99	27.31	30.35	15.11	6.23
Searching senior	22.55	27.98	29.61	14.16	5.70

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Table 9: Marginal effects of searching state for the African and non-African subsamples

	Satisfaction value
	(1)	(2)	(3)	(4)	(5)
Africans
Searching unemployed	0.016*	0.009*	–0.006*	–0.010*	–0.008*
	(0.008)	(0.005)	(0.003)	(0.005)	(0.004)
Non-searching unemployed	0.062***	0.034***	–0.024***	–0.039***	–0.032***
	(0.012)	(0.007)	(0.005)	(0.008)	(0.007)
Employed	–0.008	–0.004	0.003	0.005	0.004
	(0.007)	(0.004)	(0.003)	(0.005)	(0.004)
Observations	21875
Pseudo R-squared	0.0458
Non-Africans
Searching unemployed	0.012	0.020	0.034	–0.022	–0.045
	(0.009)	(0.016)	(0.027)	(0.017)	(0.035)
Non-searching unemployed	–0.006	–0.010	–0.017	0.011	0.023
	(0.011)	(0.019)	(0.032)	(0.020)	(0.042)
Employed	0.002	0.004	0.006	–0.004	–0.008
	(0.005)	(0.010)	(0.016)	(0.010)	(0.021)
Observations	5009
Pseudo R-squared	0.0535

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: Cross-sectional post-stratified weights were used in all estimations. Robust standard errors are reported. Significance: *10% level, **5% level, and ***1% level.

Table A1: Full marginal effects for probit estimation of reverse causality, with a dummy variable of Wave 2 labour-market status as the dependent variable

	Unconditional	Conditional
Wave 1 satisfaction (= 1)	0.032***	0.015
	(0.009)	(0.010)
Wave 1 satisfaction (= 2)	0.019**	0.005
	(0.008)	(0.008)
Wave 1 satisfaction (= 4)	–0.013	–0.006
	(0.010)	(0.010)
Wave 1 satisfaction (= 5)	0.006	0.002
	(0.011)	(0.011)
Log of real per-capita household income^a		–0.068***
		(0.022)
Age		0.0004
		(0.001)
Age squared		–0.00002
		(0.0002)
Male		–0.005
		(0.007)
Poor health		0.006
		(0.009)
Religious		0.026**
		(0.010)
Number of children in household		–0.006**
		(0.003)
Number of elderly in household		–0.005
		(0.006)
Household size		0.001
		(0.002)
African		0.051**
		(0.023)
Coloured		0.048*
		(0.025)
Asian/Indian		0.069**
		(0.033)
Relationship status		No
Education		No
Province		Yes
Geographical location		Yes
Observations	8 800	8 657
Pseudo R-squared	0.0125	0.0824

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: These estimations make use of the balanced panel together with the NIDS-prescribed panel weights. Robust standard errors are reported. Significance: *10% level, **5% level, and ***1% level. ^aThe marginal effect for income is reported as a semi-elasticity.

Table B1: Marginal effects of labour-market status on life satisfaction, including all controls

	Satisfaction value
	(1)	(2)	(3)	(4)	(5)
Wave 2	0.059***	0.038***	–0.012***	–0.044***	–0.041***
	(0.004)	(0.003)	(0.001)	(0.003)	(0.003)
Searching unemployed	0.013*	0.009*	–0.002*	–0.010*	–0.009*
	(0.007)	(0.005)	(0.001)	(0.005)	(0.005)
Non-searching unemployed	0.044***	0.028***	–0.009***	–0.033***	–0.030***
	(0.010)	(0.007)	(0.002)	(0.008)	(0.007)
Employed	–0.005	–0.003	0.001	0.004	0.004
	(0.006)	(0.004)	(0.001)	(0.005)	(0.004)
Log of per-capita real income^a	–0.243***	–0.176***	0.027***	0.192***	0.200***
	(0.017)	(0.013)	(0.004)	(0.014)	(0.015)
Age	0.010***	0.007***	–0.002***	–0.008***	–0.007***
	(0.001)	(0.0007)	(0.0002)	(0.0008)	(0.0008)
Age squared	–0.0001***	–0.00008***	0.00003***	0.00009***	0.00009***
	(0.00001)	(0.00001)	(0.000005)	(0.00001)	(0.00001)
Male	0.006	0.004	–0.001	–0.004	–0.004
	(0.005)	(0.003)	(0.0009)	(0.004)	(0.003)
Poor health	0.053***	0.034***	–0.011***	–0.040***	–0.036***
	(0.007)	(0.005)	(0.002)	(0.005)	(0.005)
Religious	–0.064***	–0.041***	0.013***	0.048***	0.044***
	(0.007)	(0.005)	(0.002)	(0.006)	(0.005)
Number of children in household	–0.003	–0.002	0.0005	0.002	0.002
	(0.002)	(0.002)	(0.0005)	(0.002)	(0.002)
Number of elderly in household	0.003	0.002	0.0005	–0.002	–0.002
	(0.004)	(0.002)	(0.0008)	(0.003)	(0.003)
Household size	–0.001	–0.0009	0.0003	0.001	0.001
	(0.002)	(0.001)	(0.0003)	(0.001)	(0.001)
African	0.092***	0.060***	–0.019***	–0.069***	–0.064***
	(0.011)	(0.007)	(0.003)	(0.008)	(0.008)
Coloured	–0.013	–0.008	0.003	0.010	0.009
	(0.014)	(0.009)	(0.003)	(0.010)	(0.010)
Asian/Indian	–0.083***	–0.054***	0.017***	0.063***	0.058***
	(0.022)	(0.014)	(0.005)	(0.017)	(0.015)
Relationship status	Yes	Yes	Yes	Yes	Yes
Education	Yes	Yes	Yes	Yes	Yes
Province	Yes	Yes	Yes	Yes	Yes
Geographical location	Yes	Yes	Yes	Yes	Yes
Observations	26 884
Pseudo R-squared	0.0715

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: These estimations make use of a pooled dataset of both Wave 1 and Wave 2 cross-sectional datasets (includes Wave 2 temporary sample members). Cross-sectional post-stratified weights were used in all estimations. Standard errors were adjusted for serial correlation and heteroskedasticity, by clustering at the individual level. Significance: *10% level, **5% level, and ***1% level. ^aMarginal effects for the long of per-capita real income are reported as semi-elasticities.

Table C1: Re-estimation of Table 5 for Waves 1 and 2 separately

	Satisfaction Value
	(1)	(2)	(3)	(4)	(5)
Wave 1: 2008
Searching unemployed	0.017*	0.013*	0.0007	–0.015*	–0.015*
	(0.010)	(0.008)	(0.0005)	(0.009)	(0.009)
Non-searching unemployed	0.027**	0.021**	0.001	–0.024**	–0.025**
	(0.013)	(0.010)	(0.001)	(0.011)	(0.012)
Employed	0.0009	0.0007	0.000	–0.001	–0.001
	(0.008)	(0.006)	(0.0003)	(0.007)	(0.007)
Log of per-capita household income	–0.204***	–0.168***	–0.030***	0.185***	0.217***
	(0.023)	(0.019)	(0.006)	(0.021)	(0.025)
Observations	12 159
Pseudo R-Squared	0.056
Wave 2: 2010/11
Searching unemployed	0.012	0.006	–0.004	–0.007	–0.006
	(0.010)	(0.005)	(0.004)	(0.006)	(0.005)
Non-searching unemployed	0.051***	0.027***	–0.018***	–0.032***	–0.027***
	(0.016)	(0.008)	(0.006)	(0.010)	(0.008)
Employed	–0.017*	–0.009*	0.006*	0.011*	0.009*
	(0.010)	(0.005)	(0.003)	(0.006)	(0.005)
Log of per-capita household income	–0.268***	–0.163***	0.076***	0.182***	0.173***
	(0.025)	(0.016)	(0.008)	(0.018)	(0.018)
Observations	14 725
Pseudo R-squared	0.093

Source: Authors’ own calculations using NIDS Wave 1 and Wave 2.

Notes: Cross-sectional post-stratified weights were used in all estimations. Robust standard errors are reported. Significance: *10% level, **5% level, and ***1% level.