Balck-Empowerment-In-Namibia

Balck-Empowerment-In-Namibia

THE IMPACT OF NAMIBIA’S AFFIRMATIVE ACTION POLICY
ON EMPLOYMENT OF THE DESIGNATED GROUPS

A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF
MASTER OF SCIENCE IN ECONOMICS
OF
THE UNIVERSITY OF NAMIBIA, FACULTY OF ECONOMICS AND
MANAGEMENT SCIENCES, DEPARTMENT OF ECONOMICS

BY

JOSEPHINE NAMASIKU SIFANI

MARCH, 2009

SUPERVISOR: DR SELMA T. KARUAIHE

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ABSTRACT
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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TABLE OF CONTENTS
Abstract…………………………………………………………………………………...ii
Table of contents……………………………………………………………………........iii
Acknowledgements…………………………………………………………………........vi
Dedication………………………………………………………………………………..vii...

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