SETP No. 14 The Economic Value of Incremental Employment in the ...

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Figure 4-3 Differences in expenditure between income categories Other services, non-profit seeking Financial institutions and insurance services Footwear Other food products Dairy products Sugar factories & refineries R30,000 & R40,000 to R40,000 & R50,000 R20,000 & R30,000 to R30,000 & R40,000 R10,000 & R20,000 to R20,000 & R30,000 R1 & R5000 to R10,000 & R20,000 Agriculture Clothing, except footwear Slaughtering, preparing & preserving of meat Grain mill products - 100 200 300 400 500 600 700 800 900 Rand values 4.13 Consistent with the above section, grain mill products, sugar products, other food products and agricultural, wood and coal products remain important expenditure items for lower income households. In contrast we see increased spending on meat, fuel, electrical appliances, clothing and dairy products for the higher income groups at the cost of grain mill, sugar and coal products. Summary and conclusion 4.14 The Statistics South Africa October Income and Expenditure Survey was reconciled with the Standard Industrial Classification of Economic Activity and used to estimate expenditure differences in different income categories. 4.15 The resultant expenditure patterns are intuitively appealing. Grain mill products are important for the very poor and fall off rapidly as a proportion of household expenditure as incomes increase. The same holds true for sugar products, petroleum, wood, coal and mining products although the initial importance is not that great. In contrast, as incomes increase so too does the proportion of expenditure on clothing, footwear and meat. 4.16 The most interesting difference between male and female headed households is how tobacco products are the fifth most important expenditure item for very poor male headed households while they do not feature in the ten most important expenditure items for female headed households. 4.17 Differences in expenditure patterns across income categories were calculated with the focus being on the poor and very poor. 33
4.18 Here we find that grain mill products, sugar products, other food products and agricultural, wood and coal products remain important expenditure items for lower income households even with increases in income. In contrast we see increased expenditure on meat, fuel, electrical appliances, clothing and dairy products for the higher income groups at the cost of grain mill, sugar and coal products. 4.19 In conclusion we note the relative importance of wood and coal products for the lower income groups must indicate how important access is to natural sources and sellings points. 34
Page 1 and 2: SETP No. 14 The Economic Value of I
Page 3 and 4: Copyright © International Labour O
Page 6 and 7: Table of Contents PREFACE .........
Page 8: List of Abbreviations CBPWP GDP ILO
Page 12 and 13: Structure of the Report This report
Page 14: 8. It is shown in the forth area of
Page 17 and 18: 1.8 In order to achieve this object
Page 19 and 20: 3 A Labour Focussed Profile of the
Page 21 and 22: Figure 3-2 Employment in the Constr
Page 23 and 24: construction. Real wages are higher
Page 25 and 26: Table 3-3 Construction industry Ave
Page 27 and 28: Figure 3-7 1997 October Household S
Page 29 and 30: 3.23 There are four possible reason
Page 31 and 32: Figure 3-8 Number of persons by inc
Page 33 and 34: 3.35 Estimates of average provincia
Page 35 and 36: 3.41 Table 3.11 reports on the prov
Page 37 and 38: 3.45 An attempt was made to verify
Page 39 and 40: Summary 3.50 The construction indus
Page 41 and 42: A profile of income and expenditure
Page 43 and 44: Figure 4-1 Percentage of expenditur
Page 45 and 46: Table 4-3 Expenditure increases for
Page 47: Table 4-5 Expenditure increases for
Page 51 and 52: • Labour and capital are in unlim
Page 53 and 54: Figure 5-1 Schematics of the Mechan
Page 55 and 56: slightly higher additional income a
Page 57 and 58: Table 5-9 Indirect job creation Num
Page 59 and 60: 6 The Macro Economic Impact of the
Page 61 and 62: Standard Industrial Classification
Page 63 and 64: Table 6-6 Macro economic impact of
Page 65 and 66: Figure 7-2 Cost of Gravel Road Cons
Page 67 and 68: • When adverse soil or other cond
Page 69 and 70: Table 7-5 Capital cost amortisation
Page 71 and 72: Table 7-8 Local and Import costs of
Page 73 and 74: • In the first five years of oper
Page 75 and 76: 7.41 Table 7.4 is sourced from Tabl
Page 77 and 78: 8.10 Second, the analysis did not t
Page 79 and 80: References Bulmer-Thomas, V. (1982)
Page 81 and 82: practical feasibility alone, labour
Page 83 and 84: domestic industry to set against th

SETP No. 14 The Economic Value of Incremental Employment in the ...

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