Urbanization and Economic Change

Deindustrialisation and Social Polarisation

• Deindustrialisation refers to the decline of manufacturing industries in a city or region, leading to job losses and economic restructuring.
• This process contributes to social polarisation, which is the increasing social and economic inequality within cities.

Global City Thesis

• Saskia Sassen's 1994 book "Cities in a World Economy: The New Inequalities within Cities" explores the impact of globalization on cities and the resulting social and economic inequalities.
• The book argues that:
  • Globalization has led to the emergence of global cities, which are strategic sites for the production and management of global capital.
  • These global cities have become hubs for finance, commerce, and services, driving economic growth and urbanization.
  • However, this growth has also led to increased social and economic inequalities within cities, as the benefits of globalization have largely accrued to the top tier of the population.

Social Polarisation

• Social polarisation is a result of the growth of high-end service industries, leading to the expansion of high-skilled professions and the decline of low-skilled jobs.
• This has led to a feminization of the workforce and the growth of low-wage and precarious work.
• Social polarisation also involves the growth of a professional and managerial class, which has distinct cultural and social norms, leading to social segregation and inequality.

Labour Market Changes in South African Cities

• Increased unemployment, despite an increase in employment, due to a lack of absorption of new entrants into the labour force.
• Youth unemployment, with young people entering the labour market for the first time struggling to find employment.
• Chronic unemployment, with older jobseekers with previous work experience struggling with long-term unemployment.
• Stagnation in small, medium, and micro enterprises, with the number of employees remaining at approximately 3.5 million.
• Decreased job search, with older jobseekers being less likely to actively seek employment.
• Segregation, with the legacy of apartheid persisting, and Africans still largely confined to low-skilled and low-wage jobs.
• Education, with the quality of education for non-whites improving, but still lagging behind that of whites.
• Informal sector, with the sector remaining small, with barriers to entry and limited growth.

Social Class Reproduction

• Social class reproduction refers to the process by which social classes are perpetuated and reproduced over time, despite changes in the economy, technology, or other social structures.
• Mechanisms of social class reproduction include:
  • Education, with elite schools and universities perpetuating privilege by providing better resources, networks, and opportunities.
  • Cultural capital, with familiarity with dominant culture, norms, and values helping individuals from higher classes navigate social and economic systems.
  • Social networks, with connections and relationships within the same class facilitating access to resources, jobs, and opportunities.
  • Economic inheritance, with wealth, property, and businesses being passed down to future generations, ensuring continued economic advantage.
  • Symbolic violence, with dominant classes imposing their values, beliefs, and practices as the norm, marginalizing subordinate groups.

Social Class Transformation

• Social class transformation refers to the process of change in an individual's social class position, either upward or downward, due to various factors such as education, skills acquisition, changes in occupation or income, marriage or partnership, inheritance or wealth transfer, and social mobility.
• Types of social class transformation:
  • Upward mobility, moving from a lower to a higher social class.
  • Downward mobility, moving from a higher to a lower social class.
  • Horizontal mobility, moving within the same social class.
• Factors influencing social class transformation:
  • Economic conditions, such as recession or economic growth.
  • Education and training opportunities.
  • Discrimination and inequality, such as racism and sexism.
  • Cultural and social capital, such as networks and norms.
  • Government policies and interventions, such as social welfare programs and education reform.

The Spatial Mismatch Hypothesis

• The Spatial Mismatch Hypothesis suggests that a mismatch between the location of low-skilled workers and job opportunities in urban areas can lead to higher unemployment rates and poverty.
• Mechanisms behind this hypothesis:
  • Spatial mismatch, with low-skilled workers residing in areas with limited job opportunities, while jobs are concentrated in other areas.
  • Job accessibility, with the accessibility of jobs affecting employment outcomes.
  • Residential segregation, with the segregation of low-skilled workers in specific neighborhoods limiting their access to job opportunities.
  • Transportation costs, with high transportation costs exacerbating the spatial mismatch.