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Disequilibrium in the Labor Market in South Africa

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  • Bankim Chadha

Abstract

Unemployment in South Africa is decomposed into a cyclical and a structural component. The estimates suggest that unemployment is largely structural. Alternative explanations for the persistence of deviations of market wages from full-employment levels are examined. Three models that are empirically capable of generating the observed wage and employment gaps are presented. The predictions of the models for wages and employment are discussed in light of recent and prospective developments in South Africa.

Suggested Citation

  • Bankim Chadha, 1995. "Disequilibrium in the Labor Market in South Africa," IMF Staff Papers, Palgrave Macmillan, vol. 42(3), pages 642-669, September.
    • Handle: RePEc:pal:imfstp:v:42:y:1995:i:3:p:642-669
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    Cited by:

    1. Mr. Vivek B. Arora & Mr. Ashok Bhundia, 2003. "Potential Output and total Factor Productivity Growth in Post-Apartheid South Africa," IMF Working Papers 2003/178, International Monetary Fund.
    2. Takao FUKUCHI, 1998. "A Simulation Analysis Of The Urban Informal Sector," The Developing Economies, Institute of Developing Economies, vol. 36(3), pages 225-256, September.

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