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Unemployment And Reservation Wages In Working-Class Cape Town

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Author Info
NICOLI NATTRASS
RICHARD WALKER
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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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2005.00034.x
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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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