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A Decomposition of Growth of the Real Wage Rate for South Africa: 1970-2000

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Author Info

  • Dipak Mazumdar
  • Dirk van Seventer

    ()
    (Trade and Industrial Policy Strategies)

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    Abstract

    This paper examines the potential trade-off between growth in employment and growth in wages. In order to assess the trade-off between employment growth and real wage growth, we make use of a simple decomposition model, following Mazumdar (2000), in which real wage growth is determined by growth in real value added, employment growth, a trend in the wage share of value added and a relative price effect.

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    File URL: http://www.dpru.uct.ac.za/sites/default/files/image_tool/images/36/DPRU%20WP02-063.pdf
    File Function: First version, 2002
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    Bibliographic Info

    Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 02063.

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    Length: 46 pages
    Date of creation: Mar 2002
    Date of revision:
    Publication status: Published in Working Paper Series by the Development Policy Research Unit, March 2002, pages 1-46
    Handle: RePEc:ctw:wpaper:02063

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    Related research

    Keywords: South Africa: real wage growth; 'price effect'; labour; skill group;

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    Cited by:
    1. Sparrow, G.N. & Ortmann, Gerald F. & Lyne, Michael C. & Darroch, Mark A.G., 2008. "Determinants of the demand for regular farm labour in South Africa, 1960-2002," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(1), March.

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