Advanced Search
MyIDEAS: Login to save this paper or follow this series

Analysing Wage Formation in the South African Labour Market: The Role of Bargaining Councils

Contents:

Author Info

  • Haroon Bhorat
  • Carlene van der Westhuizen
  • Sumayya Goga

    ()
    (Development Policy Research Unit
    Director and Professor)

Abstract

The role of bargaining councils, the central pillar of collective bargaining in South Africa, in the formation of wages is important in the context of high unemployment rates in South Africa. In this study we find that while institutionalised collective bargaining system covered substantially more formal sector workers in 2005 (30 percent) compared to 1995 (15 percent), this still meant that less than a third of the formally employed were covered by bargaining councils. Notwithstanding this, the overall rise in the number of workers covered by bargaining council agreements between 1995 and 2005 was driven almost primarily by the introduction of public sector councils. Thus, bargaining council coverage in the first decade of democracy is characterised by an erosion of coverage within the private sector bargaining council system on the one hand and the rapid rise of this system of bargaining in the public sector. On the other hand the descriptive data and multivariate models show therefore a significant wage premium associated with coverage under public sector councils in 2005, in excess of the large and significant union wage premium. The decline in the bargaining council system in the private sector is accompanied by declining wage premia for formal sector workers covered under private sector bargaining council agreements, with our preferred specification in 2005 indicating no significant private sector bargaining council wage premium.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.dpru.uct.ac.za/sites/default/files/image_tool/images/36/DPRU%20WP09-135.pdf
File Function: First version, 2009
Download Restriction: no

Bibliographic Info

Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 09135.

as in new window
Length: 98 pages
Date of creation: Jan 2009
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, January 2009, pages 1-98
Handle: RePEc:ctw:wpaper:09135

Contact details of provider:
Postal: Private Bag X3, Rondebosch, 7701
Phone: +27 21 650 5705
Fax: +27 21 650 5711
Email:
Web page: http://www.dpru.uct.ac.za
More information through EDIRC

Related research

Keywords: South Africa: bargaining system; bargaining councils; private sector; formal sector;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
  2. Kristin F. Butcher & Cecilia Elena Rouse, 2001. "Wage effects of unions and industrial councils in South Africa," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(2), pages 349-374, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Budlender, Debbie, 2009. "Industrial relations and collective bargaining : trends and developments in South Africa," ILO Working Papers 433275, International Labour Organization.
  2. Andrew Kerr & Francis Teal, 2012. "The Determinants of Earnings Inequalities: Panel data evidence from South Africa," CSAE Working Paper Series 2012-04, Centre for the Study of African Economies, University of Oxford.
  3. Bhorat, Haroon & Naidoo, Karmen & Yu, Derek, 2014. "Trade unions in an emerging economy: The case of South Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ctw:wpaper:09135. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Waseema Petersen).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.