The impact of Namibia's affirmative action policy on employment of the designated groups
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Date
2009
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The objective of the study is to determine the impact of affirmative action policy on employment of the designated groups at management level for the period 2001 to 2006. The study uses panel data on 35 public and private institutions, selected randomly using the data provided by the Employment Equity Commission (EEC). The study uses the Fixed Effects Model (FEM) and Random Effects Model (REM) to determine whether employment of the designated groups at management level has an impact on the employment ratio of those institutions. In addition, training offered to designated groups and a dummy variable to reflect compliance by institutions submitting their annual reports to the EEC are used as covariates. Results show that employment of the designated groups has a significant positive relationship on the employment ratio, while training shows an insignificant positive impact on the employment ratio. The compliance dummy shows a significant positive impact on the employment ratio which implies that the more the number of companies that submit their annual reports to the EEC the higher the employment ratio. Furthermore, the Hausman statistics of 0.3062 rejects the null hypothesis that the regressors and the individual institutional effects are not correlated. This implies that the FEM is preferred to the REM.
The objective of the study is to determine the impact of affirmative action policy on employment of the designated groups at management level for the period 2001 to 2006. The study uses panel data on 35 public and private institutions, selected randomly using the data provided by the Employment Equity Commission (EEC). The study uses the Fixed Effects Model (FEM) and Random Effects Model (REM) to determine whether employment of the designated groups at management level has an impact on the employment ratio of those institutions. In addition, training offered to designated groups and a dummy variable to reflect compliance by institutions submitting their annual reports to the EEC are used as covariates. Results show that employment of the designated groups has a significant positive relationship on the employment ratio, while training shows an insignificant positive impact on the employment ratio. The compliance dummy shows a significant positive impact on the employment ratio which implies that the more the number of companies that submit their annual reports to the EEC the higher the employment ratio. Furthermore, the Hausman statistics of 0.3062 rejects the null hypothesis that the regressors and the individual institutional effects are not correlated. This implies that the FEM is preferred to the REM.
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A theses submitted in partial fulfillment of the requirements for the Degree of Master of Science in Economics
Keywords
Affirmative acton programs