DEPARTMENT OF SOCIOLOGY
INDUSTRIAL AND ECONOMIC SOCIOLOGY II
THE SOCIOLOGY OF LABOUR MARKETS
LECTURERS:
Mr Leroy Maisiri and Ms Julia Nkoana
[email protected] and [email protected]
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Second Term, 2017
INTRODUCTION
Welcome to the sociology of labour markets course. A labour market is a market where
people offer their skills to employers in exchange for wages, salaries, and various other forms
of compensation. In simpler terms, it is a place where labour is bought and sold. Labour
markets are a central feature of our daily lives and hardly a week passes without a
government minister talking about issues surrounding the labour market, such as
globalization, unemployment, minimum wages, flexible labour, and so on.
There are currently two main approaches to labour markets; namely, the orthodox approach
and the heterodox approach. The orthodox approach asserts that labour markets are
synonymous with the markets for commodities (such as cars, furniture, food, and the like), in
that, they are also governed by the ‘laws’ of supply and demand. This approach perceives
human beings as mere commodities and disregards socio-economic factors that affect the
buying and selling of labour. To this end, neo-liberal ideas on labour markets obtain most of
their intellectual justification from the orthodox account. Despite this approach being,
arguably, intellectually bankrupt, it has gained hegemonic status. It is not only taught in
schools, colleges, and universities, but it also informs local, national, and global economic
policy.
In opposition to the orthodox approach is a disparate group of heterodox economists and
non-economists (such as industrial and economic sociologist) whose work is united around a
common theme, namely, that labour markets are embedded in institutions or social
structures (i.e. mechanisms, rules, resources, conventions, habits, powers, and so on). This
approach contends that one cannot directly equate labour markets to commodity markets,
as they are not shaped purely by the laws of supply and demand. Rather, labour markets are
shaped by the interplay between various socio-economic factors. The outcome of this
interplay is segmented labour markets, each governed by their own rules and conventions.
That said, the heterodox approach furnishes us with a set of theoretical and empirical insights
from which an alternative approach to the orthodox approach can be forged. In sum, this
course will generally focus on the concept of the labour market and the various factors that
influence or are influenced by them.
STRUCTURE OF THE COURSE
This course will run over a six-week period and is divided into three thematic sections. The
first section will set the scene for the course. It will introduce you to a sociological
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understanding of labour markets, followed by the conceptual underpinnings of current labour
market theories. The second section will look at the effects of neo-liberalism and globalisation
on the South African labour market. Both section one and two will be taught by Mr Leroy
Maisiri (PhD Candidate, Department of Sociology). The third and final section of the course
will focus on the impact of social inequalities and the minimum wage on the South African
labour market in the post-apartheid era. This section will be taught by Ms Julia Nkoana (PhD
Candidate, Department of Sociology).
COURSE OBJECTIVES
At the end of this course, students will have developed:
 a solid understanding of the Sociology of the labour market;
 a firm grasp of the different theoretical approaches to the labour market;
 an understanding of how South African labour market outcomes are connected to
global economic policies and processes;
 a conceptual understanding of labour market inequalities in post-apartheid South
Africa; and
 an understanding of the impacts of the minimum wage on the South African labour
force.
COURSE REQUIREMENTS AND ASSESMENT
This course will run from the 3rd of April to the 26th of May 2017. Class attendance is
mandatory and it is in your best interest to attend lectures as all lecture content is
examinable. The requirements for this course are as follows:
The assessment of this course will consist of :
A coursework component worth 40% of the total mark for the course.
An examination component worth 60% of the total mark for the course.
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There will be two forms of coursework assessment. The first will be a test on
the 19th of May. Secondly students are required to choose one essay topic
from the three thematic sections of the course. Lists containing the three essay
topics will be posted on the notice board at the Department of Sociology.
Students must write their names under the topic they wish to write an essay
on. Because there are 89 students enrolled for the course, for section 1 and 2
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up to (45 students) will be allowed to choose topics from either theme 1 or 2
this and 44 students for theme 3.
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Once all the spaces are filled in one list, students will then be obliged to put
their names on one of the other two lists. This process will operate on a firstcome, first-serve basis.
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The due date for the essay is the 29th of May 2017 – the essay must be handed
to the departmental secretary by no later than 12:00.
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The essay questions will be printed on a separate handout that will be
distributed during lectures.
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The essay should not be longer than 2500 words (excluding title page and
references) with 1.5 spacing.
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Please note that students will be penalised for poor referencing. It is therefore
in your interest to familiarise themselves with departmental rules for
referencing by consulting Handout number 1.
PLAGIARISM
Plagiarism is viewed in a very serious light by the University. Any student found guilty of
plagiarism will be sanctioned by the Department or the University. It is your responsibility to
familiarise yourself with the University’s policy on plagiarism. See the University’s Plagiarism
Policy at http://www.scifac.ru.ac.za/plag.htm. You may subscribe to relevant software in the
university to ensure that work is not plagiarised in any way. Contact the Centre for Higher
Education Research, Teaching and Learning (CHERTL) for details.
SECTION 1: THEORIES OF THE LABOUR MARKET
(Mr Leroy Maisiri)
In this section, we outline two dominant theoretical perspectives on the labour market;
namely, orthodox or neo-classical and heterodox or segmented labour market theories. The
neo-classical account provides a disembedded account of social structures, whilst the labour
market segmentation approach recognises that labour markets are embedded in social
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structures. This sections aims to expose the limitations of the neo-classical account, whilst
attempting to offer a more realistic approach to the labour market. In this section, students
will be provided with a contextual and conceptual understanding of the labour market as a
social institution. This section of the course provides the conceptual foundation for the next
two sections of the course.
Readings:
Anker, R. 1997. ‘Theories of occupational segregation by sex: An overview’. International
Labour Review, 136(3), pp. 315-340.
Browne, I. and Misra, J. 2003. ‘The intersection of gender and race in the labor
market’. Annual Review of Sociology, 29, pp. 487-513. Available from:
http://www.jstor.org/stable/pdf/30036977.pdf.
Doeringer, P.B. and Piore, M.J. 1985. Internal labor markets and manpower analysis.
Massachusetts: Lexington Books.
Fevre, R. 1992. The sociology of labour markets. Hemel Hempstead: Harvester Wheatsheaf.
(Chapters 1 and 2).
Fine, B. 1998. Labour Market Theory. London: Routledge. (Chapters 3 and 5).
Fleetwood, S. 2006. ‘Re-thinking labour markets: A critical realist-socio-economic
perspective’. Capital and Class, 30(2), pp. 59-89.
Fortin, N.M. 2005. ‘Gender role attitudes and the labour-market outcomes of women across
OECD countries’. Oxford review of Economic Policy, 21(3), pp. 416-438. Available from:
http://oxrep.oxfordjournals.org/content/21/3/416.full.pdf.
Gordon, D., Edwards, R. and Reich, M. 1982. Segmented work, divided workers. Cambridge:
Cambridge University Press.
Grimshaw, D., Ward, K., Rubery, J. and Beynon, H. 2001. ‘Organisations and the
transformation of the internal labour market’, Work, Employment and Society, 15(1), pp. 2554. Available from: http://wes.sagepub.com/content/15/1/25.full.pdf+html.
Leontaridi, M., 1998. ‘Segmented labour markets: Theory and evidence’. Journal of Economic
Surveys, 12(1), pp. 103-109. Available from:
http://onlinelibrary.wiley.com/doi/10.1111/1467-6419.00048/pdf.
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Loveridge, R. and Mok, A.L., 1979. Theories of labour market segmentation. The Hague:
Martinus Nijhoff. (Chapter 3).
Peck, J. 1996. Work-place: The social regulation of labour markets. New York: Guilford Press.
(Chapters 1 to 4).
Peck, J. 2000. ‘Structuring the labour market: A segmentation approach’, in S. Acroyd and S.
Fleetwood (eds). Realist perspectives on management and organisations. London: Routledge.
Polanyi, K. 2001. The great transformation: Political and economic origins of our time. Boston:
Beacon Press. (Chapters 5 and 6).
Reich, M., Gordon, D. and Edwards, R. 1973. ‘Dual Labour Markets. A Theory of Labour Market
Segmentation’. The American Economic Review, 63(2), pp. 359-365.
Rutherford, T.D., 2006. ‘Requiem or rebirth? Internal labour markets and labour market
restructuring in the Kitchener and Sault Ste. Marie regions’, The Canadian Geographer, 50(2),
pp. 197-216. Available from:
http://0-web.b.ebscohost.com.wam.seals.ac.za/ehost/pdfviewer/pdfviewer?sid=bdf464c54b76-4f1c-82a2-eea7b06af8f1%40sessionmgr103&vid=1&hid=128.
Yates, M. 2003. Naming the system: Inequality and work in the global economy. New York:
Monthly Review Press. (Chapters 5 and 6).
SECTION 2: NEO-LIBERALISM, GLOBALISATION, AND PRECARIOUS LABOUR
(MR LEROY MAISIRI)
Globalisation is a complex process that refers to the increasing integration of economies
around the world, particularly through the movement of goods, services, and capital across
borders. This global integration is driven and facilitated by neo-liberal policies. According to
orthodox economists, globalisation promises economic development and social upgrading
opportunities for developing countries. However, there is growing body of empirical research
which has shown that globalisation has varied and unequal impacts on developing countries.
The conclusion from this research is that globalisation has largely detrimental outcomes for
wage workers in the developing countries. This part of the course will explore the varied
impacts of neoliberalism and globalisation around the world, with a specific focus on wage
labour. This section of the course will also examine issues such as ‘flexible’ labour, unfree
labour, and the growing casualisation of labour in key economic sectors in developing
countries.
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Readings:
Barrientos, S. 2008. ‘Contract labour: The “Achilles heel” of corporate codes in commercial
value chains’, Development and Change, 39(6), pp. 977-990.
Barrientos, S., Kothari, U. and Phillips, N. 2013. ‘Dynamics of unfree labour in the
contemporary global economy’, The Journal of Development Studies, 49(8), pp. 1037-1041.
Bhorat, H., Lundall, P. and Rospabe, S. 2002. The South African labour market in a globalizing
world: Economic and legislative considerations. Geneva: International Labour Organisation.
Brass, T. 2011. ‘Unfree labour as primitive accumulation?’, Capital & class, 35(1), pp. 23-38.
Broad, D. 1995. ‘Globalization and the casual labor problem: History and prospects’, Social
Justice, 22(61), pp. 67-91.
Carmody, P. 2002. ‘Between globalisation and (post) apartheid: The political economy of
restructuring in South Africa’, Journal of Southern African Studies, 28(2), pp. 255-275.
Available from: http://www.tandfonline.com/doi/pdf/10.1080/03057070220140694.
Castles, S. 2011. ‘Migration, crisis, and the global labour market’, Globalizations, 8(3), pp. 311324. Available from:
http://0-web.a.ebscohost.com.wam.seals.ac.za/ehost/pdfviewer/pdfviewer?sid=b1d9c78092bd-475c-b4f1-b122a91c8e69%40sessionmgr4004&vid=1&hid=4109.
Edwards, L. 2006. ‘Trade liberalisation and labour demand in South Africa during the 1990s’,
in U. Pillay, R. Tomlinson and J. du Toit (eds), Democracy and development: Urban policy in
South Africa. Pretoria: HSRC.
Harris, R. and Lauderdale, P. 2002. ‘Globalization, neoliberalism, and post-apartheid South
Africa’, Journal of Asian and African Studies, 37(3-5), pp. 422-435.
Jenkins, R. 2006. ‘Contrasting perspectives on globalization and labour in South
Africa’, Progress in Development Studies, 6(3), pp. 185-200. Available from:
http://pdj.sagepub.com/content/6/3/185.full.pdf.
Kenny, B. and Webster, E. 1998. ‘Eroding the core: Flexibility and the re-segmentation of the
South African labour market’, Critical Sociology, 24(3), pp. 216-243.
Lesufi, I. 2002. ‘Six years of neoliberal socioeconomic policies in South Africa’, Journal of Asian
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and African studies, 37(3-5), pp. 286-298.
Lund, F., 2002. ‘Social security and the changing labour market: Access for non‐standard and
informal workers in South Africa’. Social Dynamics, 28(2), pp. 177-206. Available from:
http://www.tandfonline.com/doi/pdf/10.1080/02533950208458737.
MacEwan, A. 1999. Neo-liberalism or democracy? Economic strategy, markets, and
alternatives for the 21st century. London: Zed Books. (Chapters 1, 2 and 4).
Munck, R. 2002. Globalization and labour: The new 'great transformation'. London: Zed
Books. (Chapters 1, 3 and 5).
Overbeek, H.W. (ed). 2002. Restructuring hegemony in the global political economy: The rise
of transnational neo-liberalism in the 1980s. London: Routledge. (Chapters 1 and 2).
Pillay, D. 2008. ‘Globalisation and the informalisation of labour: The case of South Africa’, in
A. Bieler, I. Lindberg and D. Pillay (eds), Labour and the challenges of globalisation. Scottsville:
University of KwaZulu-Natal Press.
Roychowdhury, S. 2004. ‘Globalisation and labour’, Economic and Political Weekly, pp. 105108.
Scrase, T.J. 2003. ‘Precarious production: Globalisation and artisan labour in the Third
World’, Third World Quarterly, 24(3), pp. 449-461. Available from:
http://www.tandfonline.com/doi/pdf/10.1080/0143659032000084401.
Selwyn, B. 2013. ‘Social upgrading and labour in global production networks: A critique and
an alternative conception’, Competition & Change, 17(1), pp. 75-90. Available from: http://0web.a.ebscohost.com.wam.seals.ac.za/ehost/pdfviewer/pdfviewer?sid=761ea909-a7364719-8dd3-c49df31c0092%40sessionmgr4005&vid=1&hid=4109.
Smart, B. 2003. Economy, culture and society: A sociological critique of neo-liberalism.
Philadelphia: Open University Press.
Theron, J., Godfrey, S. and Visser, M. 2007. Globalization, the impact of trade liberalization,
and labour law: The case of South Africa. Geneva: International Institute for Labour Studies.
Wills, J. 2010. Global cities at work: New migrant divisions of labour. London: Pluto Press.
(Chapter 1).
SECTION 3: LABOUR MARKET INEQUALITIES, MINIMUM WAGES and
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REGULATED FLEXIBILITY
(MS JULIA NKOANA)
In its attempt to reverse the legacies of the apartheid labour market, the post-apartheid
government developed wide-ranging labour market policies to address poverty and inequalities
among South African households. This section deals with some of the South African labour
market’s challenges, including discrimination (based on race, gender, and disability) and skills
shortages. This section will also look at minimum wages as one of the policies developed by
the South African government to address the issues of poverty and inequalities in the labour
market. The section also looks at the impact of regulation on the South African labour market.
In this regard, the concept of regulated flexibility or ‘flexicurity’ will be discussed. The concept
of regulated flexibility is based on the approach to flexibility outlined in the ILO Country
Review, which included both the employers' interest in flexibility and the employees' interest
in security.
Readings:
Adam-Smith, D., Norris, G. and Williams, S. 2003. ‘Continuity or change? The implications
of the national minimum wage for work and employment in the hospitality industry’, Work,
Employment and Society, 17(1), pp. 29-47.
Arrowsmith, J., Gilman, M. W., Edwards, P. and Ram, M. 2003. ‘The impact of the national
minimum wage in small firms’, British Journal of Industrial Relations, 41(3), pp. 435-456.
Auer, P., Berg, J. and Cazes, S. 2008. Balancing Flexibility and Security: The Role of Labour
Market Policies and Institutions. Tilburg Law Review. Vol. 14. pp. 49-56.
Barker, F. 2003. South African labour market: Critical issues for renaissance. Pretoria: Van
Schaik Publishers. (Chapters 8-9).
Brander, E. 2013. ‘The employment effects of minimum wages in Canada and the U.S.’, Public
Policy and Governance Review, 4(2), pp. 44-55.
Bradford, C.S. 2004. Does Size Really Matter? An Economic Analysis of Small Business
Exemptions from Regulation. The Journal of Small and Emerging Business Law. Vol. 8 (1).
pp. 1-37.
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Carpenter, M., Freda, B., and Speeden, S. 2007. Beyond the workfare state: Labour markets,
equalities and human rights. Bristol: Polity Press. (Chapters 1-3).
Cheadle, H. 2006. Regulated Flexibility: Revisiting the LRA and the BCEA. Industrial Law
Journal. Vol. 27. pp. 663-703.
Cohen, T. and Moodley, L. 2012. Achieving “Decent Work” in South Africa. PER/PELJ. Vol.
15 (2). pp. 320-334.
Crossman, A. 2001. The rhetoric and reality: Employer responses to the national minimum
wage. Oxford: Blackwell Publishers.
Dickinson, J and Russell, B. 1986. ‘Introduction: The structure of reproduction in capitalist
society’, in J. Dickinson and B. Russell (eds), Family, economy and state: The social
reproduction process under capitalism. London: Croom Helm.
Edwards, P., Ram, M. and Black, J. 2004. Why Does Employment Legislation Not Damage
Small Firms? Journal of Law and Society. Vol. 31 (2). Pp. 245-265.
Fahlbeck, R. 1998. Flexibility: Potentials and Challenges for Labor Law. Competition, Labor
Law and Policy Journal. Vol. 19. Pp. 515-546.
Fevre, R. 1992. The sociology of labour markets. Hemel Hempstead: Harvester Wheatsheaf.
(Chapter 3).
Jenkins, S. 2004. Gender, place and the labour market. Aldershot: Ashgate. (Chapter 2).
Martin, R. and Wilkinson, F. 2000. ‘Labour markets, social justice and economic efficiency’,
Cambridge Journal of Economics, 24, pp. 631-641.
Klosse, S. 2003. Flexibility and Security: A Feasible Combination? European Journal of Social
Security. Vol. 5 (3). Pp. 191-213.
Kraak, A. 1996. ‘Affirmative action and dilution of segmented labour markets’, in B.
Nzimande and M. Sikhosana (eds), Affirmative action and transformation. Durban: Indicator
Press.
Maziya, M. 2001. ‘Contemporary labour market policy and poverty in South Africa’, in H.
Bhorat, M. Leibbrandt, M. Maziya, S. van der Berg and I. Woolard (eds), Fighting poverty:
Labour markets and inequality in South Africa. Cape Town: UCT Press.
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Naidoo, L., Klerck, G. and Manganeng, L. 2007. ‘The “bite” of the minimum wage:
Enforcement of and compliance with the sectoral determination for farm workers’, South
African Journal of Labour Relations, 31(1), pp. 25-46.
Neumark, D. and Wascher, W. 2002. ‘Do minimum wages fight poverty?’, Economic Enquiry,
40(3), pp. 315-333
Piketty, T. 2014. Capital in the twenty first century. Cambridge, Massachusetts: The Belknap
Press of Harvard University Press. (Part 3: Chapters 7-10).
Sikhosana, M. 1996. ‘Affirmative action: Its possibilities and limitations’, in B. Ndzimande
and M. Sikhosana (eds), Affirmative action and transformation. Durban: Indicator Press.
Standing, G., Sender, J., and Weeks, J. 1996. Restructuring the labour market: The South
African challenge. Geneva: ILO. (Chapters 4 and 10).
Wilthagen, T., Tros, F. and van Lieshout, H. 2004. Towards ‘Flexicurity’? Balancing
Flexibility and Securityin EU Member States. European Journal of Social Science. Vol. 6 (2).
pp. 113-136.
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