The copyright of this thesis vests in the author. No quotation from it or information derived from it is to be published without full acknowledgementTown of the source. The thesis is to be used for private study or non- commercial research purposes only. Cape Published by the University ofof Cape Town (UCT) in terms of the non-exclusive license granted to UCT by the author. University The Spatial Mismatch Hypothesis and Cape Town A qualitative study on overcoming the barriers to job access Town Hayley Petersen September 2010 Cape of University University of Cape Town Department of Sociology STUDENT NAME: HAYLEY PETERSEN STUDENT NUMBER: PTRHAY002 SUPERVISOR: PROF. OWEN CRANKSHAW Town Cape of PLAGIARISM DECLARATION This work has not been previously submitted in whole, or in part, for the award of any degree. It is my own work. Each significant contribution to, and quotation in, this dissertation from the work, or works, of other people has been attributed, and has been cited and referenced. University Signature: Date: September 2010 A minor dissertation submitted in partial fulfilled in requirement of the award of the degree of Master of Social Sciences 2|Plagiarism Declaration Acknowledgements I would like to thank Prof. Owen Crankshaw, my supervisor for his guidance and insight, my family and friends for their support and the participants who graciously gave their time to us. Thank you. Town Cape of University 3|Acknowledgements Abstract This is a qualitative study based on the issue of job access, which forms part of the spatial mismatch hypothesis. Within the context of Cape Town, the study shows that barriers with regard to job access, such as transit and information barriers, concerning job opportunities or vacancies, can be and are overcome. Data were gathered through interviews conducted within the city of Cape Town with employees, owners and managers within the low-skilled employment sector. The use of informal social networks is shown to be frequently used within the low-skilled sector, by both employers and employees. Information concerning job vacancies and opportunitiesTown for the low-skilled, low- wage workforce are thus passed on through networks. The fact that job seekers, who are part of an employment-rich network regardless of space or distance Capebetween home and where work is located, have a better chance of job acquisition is also illustrated. Neighbourhoodof networks are often characterised as being employment-poor, and are conceptualised by the spatial mismatch hypothesis as being the only networks used among the low-skilled workforce. This is proven to be null – that networks extend beyond the neighbourhood and thus information through employment-rich networks are without boundaries. Ultimately, it is shown thatUniversity distance has little to do with accessing employment information around low-skilled, low-wage job opportunities and has little to do with high unemployment levels and low wages experienced by the low-skilled workforce. 4|Abstract TABLE OF CONTENTS PLAGIARISM DECLARATION ......................................................................................................................................2 Acknowledgements ..................................................................................................................................................3 Abstract ....................................................................................................................................................................4 Introduction ..............................................................................................................................................................7 Literature ............................................................................................................................................................... 10 2.1 Overview of the Spatial Mismatch Hypothesis............................................................................................ 10 2.2 Conceptualising Informal Job Search Methods and its Frequency ............................................................. 12 2.3 The Effects of Space and Distance on Job Search Methods ........................................................................ 14 2.3.1 Place-to-place job searches and the impact of distance ...................................................................... 14 2.3.2 Social networks and the impact of distance ......................................................................................... 15 2.4 Job Access: transit barriers, access to information and social isolation ..................................................... 17 2.4.1 Issues of Transit ................................................................................................Town.................................... 17 2.4.2 Information and Social Isolation ........................................................................................................... 19 2.5 Why Employers use Employee Networks .................................................................................................... 25 2.6 Why Job Searchers use Employee-Rich Networks ................................Cape ...................................................... 27 2.7 The Context of Cape Town and the Spatial Mismatch that Exists ............................................................... 28 2.8 Summary ................................................................of................................ ...................................................... 30 Research Methodology.......................................................................................................................................... 32 3.1 Conceptual Framework ............................................................................................................................... 32 3.2 Research Design........................................................................................................................................... 33 3.3 Sampling ...................................................................................................................................................... 35 3.4 Data Collection ................................University................................ ............................................................................ 36 3.5 Limitations ................................................................................................................................................... 38 3.6 Ethics within the Research .......................................................................................................................... 39 Findings and Discussion ......................................................................................................................................... 40 4.1 Mechanisms of the Spatial Mismatch Hypothesis ...................................................................................... 40 4.2 Access to Employment Information ............................................................................................................ 40 4.2.1 Prevalence and frequency of informal networks ................................................................................. 42 4.2.2 Why employers use employees’ networks over other methods ......................................................... 46 4.2.3 Why job seekers use employment-rich networks ................................................................................ 59 4.2.4 Connection does not necessarily lead to acquisition ........................................................................... 61 5|Table of Contents 4.2.5 Close Proximity Hires, Networks and Information Flow ...................................................................... 62 4.2.6 Information access has no boundaries, and distance is irrelevant ...................................................... 66 4.2.7 Summary ............................................................................................................................................... 70 4.3 What this means in terms of the Spatial Mismatch Hypothesis ................................................................. 70 Conclusion ............................................................................................................................................................. 73 Reference List ........................................................................................................................................................ 75 Appendix One: Illustration of the Mismatch in Cape Town .................................................................................. 79 Appendix Two: Tabulation of Interviews Conducted ............................................................................................ 80 Appendix Three: Interview Schedules ................................................................................................................... 81 Appendix four: Interview Transcripts .................................................................................................................... 85 Transcripts 2009-2010 ....................................................................................................................................... 85 Transcripts 2008 (Honours Project) ................................................................................................................. 189 Town Cape of University