https://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / All News RSS ← Back
Africa|Efficiency
Africa|Efficiency
africa|efficiency
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Research shows positive effects of Presidential Youth Employment Stimulus programme

Close

Embed Video

Research shows positive effects of Presidential Youth Employment Stimulus programme

5th February 2024

By: Thabi Shomolekae
Creamer Media Senior Writer

ARTICLE ENQUIRY      SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

The Presidential Youth Employment Initiative – Basic Education Employment Initiative (PYEI-BEEI), launched in 2020, has been shown to have economic benefits through an indirect influence on non-programme employment and wages.

This was according to a new study, 'Stimulus effects of a large public employment programme', funded by Agence Française de Développement (AFD) and the European Commission through the EU-AFD Research Facility on Inequalities, and undertaken by the University of Cape Town's Southern Africa Labour and Development Research Unit.

Advertisement

The study was commissioned by the country’s Presidency and investigated the domestic factor income effects of the PYEI-BEEI.

Researchers characterised the spending and factor income effects of the PYEI-BEEI programme and matched securely anonymised participant IDs with anonymised weekly individual-level sales data from a large retailer and estimated the treatment effect on participant spending at the retailer.

Advertisement

“The researchers found a sharp increase in spending of 15.4% explained by increasing consumption expenditure. They also found that this direct effect on consumption and spending was sustained for the duration of the PYEI-BEEI, and then decreased to about 4% in the months after the programme. The researchers extrapolated the effects of the increase in retailer sales on domestic factor incomes and suggested that this phenomenon implied benefits to value added, job creation and wages in the local areas in addition to the actual payments of the PYEI-BEEI programme,” the study found.

It is estimated that the programme will create 1 800 more jobs a month and increase the income of local communities by about R13.3-million.

The study concludes that domestic factor income effects may be important in evaluating the economic efficiency of government spending programmes, and may help reconcile some of the perceived trade-offs in public objectives between poverty reduction and private sector jobs.

It also suggests that the sales to domestic factor income conversion estimated for the PYEI-BEEI programme implies that other public spending, such as social grants, may have similar initial stimulus effects.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options

Email Registration Success

Thank you, you have successfully subscribed to one or more of Creamer Media’s email newsletters. You should start receiving the email newsletters in due course.

Our email newsletters may land in your junk or spam folder. To prevent this, kindly add newsletters@creamermedia.co.za to your address book or safe sender list. If you experience any issues with the receipt of our email newsletters, please email subscriptions@creamermedia.co.za