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Unemployment And Reservation Wages In Working-Class Cape Town

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  • NICOLI NATTRASS
  • RICHARD WALKER
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    Abstract

    Are the unemployed in South Africa 'pricing themselves out of the labour market;'? This paper explores this proposition through an analysis of reservation wages in Cape Town's working class district of Khayelitsha/Mitchell's Plain. It argues that reservation wages are not out of line with predicted wages. This, in turn, suggests that unemployment in the area is not attributable to job seekers having unrealistically high reservation wages. Copyright 2005 Economic Society of South Africa.

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    Bibliographic Info

    Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

    Volume (Year): 73 (2005)
    Issue (Month): 3 (09)
    Pages: 498-509

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    Handle: RePEc:bla:sajeco:v:73:y:2005:i:3:p:498-509

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    Cited by:
    1. Johannes Fedderke, 2012. "The Cost of Rigidity: The Case of the South African Labor Market," Comparative Economic Studies, Palgrave Macmillan, vol. 54(4), pages 809-842, December.
    2. James A. Levinsohn & Todd Pugatch, 2011. "Prospective Analysis of a Wage Subsidy for Cape Town Youth," NBER Working Papers 17248, National Bureau of Economic Research, Inc.
    3. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers 63, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Neil A. Rankin & Gareth Roberts, 2011. "Youth Unemployment, Firm Size And Reservation Wages In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 128-145, 06.

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