Industry structure and labor market flexibility in the South African manufacturing sector: A time series and panel data approach
AbstractThis paper presents a joint analysis of labor market flexibility and product market structure. Our investigation confirms earlier results of imperfect competition in South African manufacturing where we find an average mark-up of 50% for the period 1970 to 2004 that is without consistent trend over time. The contribution of the paper is to provide a theoretically grounded means of linking output market conduct to labor market flexibility. We infer the proportion of labor associated with rigidities in the labor market from the mark-up, and find that two thirds of total labor employed in South African manufacturing is associated with rigidities. We find that this proportion falls during the 1980s and rises during the 1990s, suggesting an increase in labor flexibility followed by a decrease.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 28 (2011)
Issue (Month): 3 (May)
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Web page: http://www.elsevier.com/locate/inca/30411
Mark-up Industry structure Labor market flexibility;
Other versions of this item:
- Johannes W. Fedderke & Andrew J Hill, 2006. "Industry Structure and Labour Market Flexibility in the South African Manufacturing Sector: A Time Series and Panel Data Approach," Working Papers 43, Economic Research Southern Africa.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
- J69 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Other
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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