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Labour market discrimination in the North West province of South Africa

Author

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  • Philip AE Serumaga-Zake
  • Willem Naude

Abstract

This article provides an econometric estimate of labour market discrimination in the North West province of South Africa. Using data obtained from the October 1995 Household Survey, it was found that in 1995 statistically significant gender discrimination exists against women in North West's labour market. The male discriminatory wage advantage of 127 per cent and the female discriminatory disadvantage of 195 per cent were ascribed to the overrewarding and underrewarding of some personal characteristics of males and females, respectively. Productivity differentials of 40 per cent in favour of females and a premium paid to women measuring 71 per cent also exist. Discrimination explains 50 per cent of the wage gap between genders, while productivity differentials and the premium account for 13 and 37 per cent respectively. The study supports 'affirmative action' and suggests policies that aim to alter the occupational distributions, and these may need to target educational decisions made prior to labour market entry.

Suggested Citation

  • Philip AE Serumaga-Zake & Willem Naude, 2001. "Labour market discrimination in the North West province of South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 18(5), pages 671-682.
    • Handle: RePEc:taf:deveza:v:18:y:2001:i:5:p:671-682
    DOI: 10.1080/03768350120097496
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    References listed on IDEAS

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    1. Bergmann, Barbara R, 1971. "The Effect on White Incomes of Discrimination in Employment," Journal of Political Economy, University of Chicago Press, vol. 79(2), pages 294-313, March-Apr.
    2. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    3. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    4. Terrell, Katherine, 1993. "Public-private wage differentials in Haiti Do public servants earn a rent?," Journal of Development Economics, Elsevier, vol. 42(2), pages 293-314, December.
    5. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
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