REPRODUCED INEQUALITY - PARTICIPATION AND SUCCESS IN THE SOUTH-AFRICAN INFORMAL ECONOMY

Early studies of the informal economy have alternately argued either t hat employment in this secondary economy reinforces social inequality or that it dilutes it. More recent studies argue that the informal eco nomy is varied in its types of jobs, simultaneously offering opportuni ties to many who would not have them in the formal economy, yet furthe r exploiting others. National level survey data from South Africa anti the methods of stratification research are used in this study to exam ine employment in the informal economy and to compare levels of succes s attained in the informal and formal economies. Success in both econo mies tends to favor whites, men, and those with more education and exp erience; nonwhites, women and the less educated are more likely to wor k in the informal economy. The key finding of this analysis is that su ccess in terms of occupational status and income attainment follows pa tterns of stratification in the informal economy consistent with those in the formal economy.