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Human Capital Constraints in South Africa: A Firm-Level Analysis

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Author Info

  • Ewert P. J. Kleynhans

    (School of Economics, North-West University, South Africa)

  • Johannes Riaan Labuschagne

    (School of Economics, North-West University, South Africa)

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    Abstract

    This paper examines human capital constraints in the South African economy, and the austerity of these constraints on firms in the country. The two key human capital constraints explored in this article are the inadequately educated workforce and labour market distortions. Regression analysis was applied to examine determinants of increased labour productivity in manufacturing firms. Education and labour market distortions were found to have a varying influence on output per worker. Principal Component Analysis (pca) of the explanatory variables achieved similar results. This study found that the highest percentage of the total variance is explained by latent variables that incorporate education, training, compensation, region and Sector Education Training Authority (seta) support and effectiveness.

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    Bibliographic Info

    Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

    Volume (Year): 10 (2012)
    Issue (Month): 1 (Spring) ()
    Pages: 69-86

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    Handle: RePEc:mgt:youmgt:v:10:y:2012:i:1:p:069-086

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    Related research

    Keywords: human capital constraints; productivity; efficiency; labour; education; manufacturing; South Africa;

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    References

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    1. Johannes Fedderke, 2005. "Technology, Human Capital and Growth," Working Papers 27, Economic Research Southern Africa.
    2. Haroon Bhorat & Paul Lundall, 2004. "Employment, Wages And Skills Development: Firm-Specific Effects - Evidence From A Firm Survey In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(5), pages 1023-1056, December.
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