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Estimating The Substitutability Of African And White Workers In South African Manufacturing, 1950-1985

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  • Martine Mariotti

Abstract

In this paper I estimate the elasticity of substitution between African and white workers in the South African manufacturing industry during Apartheid. I find that the elasticity of substitution remained fairly high despite changes in the technology used in manufacturing, despite changes in the allocation of jobs to African and white workers, and despite the increasing skill differential between white and African workers. The elasticity of substitution for production workers declined from 9.81 in 1950 to 4.64 by 1985. This result shows that African and white workers were substitutes throughout Apartheid notwithstanding legislation restricting the types of jobs that African workers could do.

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  • Martine Mariotti, 2012. "Estimating The Substitutability Of African And White Workers In South African Manufacturing, 1950-1985," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(2), pages 47-60, December.
    • Handle: RePEc:taf:rehdxx:v:27:y:2012:i:2:p:47-60
    DOI: 10.1080/20780389.2012.745664
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    References listed on IDEAS

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    1. Feinstein,Charles H., 2005. "An Economic History of South Africa," Cambridge Books, Cambridge University Press, number 9780521616416.
    2. Lewis,Jon, 1984. "Industrialisation and Trade Union Organization in South Africa, 1924–1955," Cambridge Books, Cambridge University Press, number 9780521263122.
    3. Feinstein,Charles H., 2005. "An Economic History of South Africa," Cambridge Books, Cambridge University Press, number 9780521850919.
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    Cited by:

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    2. Dieter von Fintel, 2016. "Wage flexibility in a high unemployment regime: spatial heterogeneity and the size of local labour markets," Working Papers 09/2016, Stellenbosch University, Department of Economics.
    3. Andrew Seltzer & Martin Shanahan & Claire Wright, 2022. "The Rise and Fall and Rise (?) of Economic History in Australia," CEH Discussion Papers 05, Centre for Economic History, Research School of Economics, Australian National University.

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