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Unemployment, Education and Skills Constraints in Post-Apartheid South Africa

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Author Info
Rosa Dias
Dorrit Posel () (Division of Economics,University of KwaZulu-Natal)
Abstract

This paper investigates the relationship between education and unemployment in Post-Apartheid South Africa, and probes the argument that employment growth has been inhibited particularly by skills constraints. We use probit regression analysis to show that higher education protected against unemployment in both 1995 and 2003, and that overall, the relative benefits to tertiary education rose over the period. We show also that these aggregate trends mask substantial variation among race groups and within race groups, among men and women. However, after taking into account changes in the survey instruments used to measure employment, we find only modest evidence of skills-intensive employment growth. Rather, the increase in formally qualified labour was considerably larger than the increase in demand for skilled and semi-skilled labour over the period, and so unemployment rates even among graduates increased over the period.

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File URL: http://www.commerce.uct.ac.za/research_units/dpru/WorkingPapers/PDF_Files/WP_07-120.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 9626.

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Length: 38 pages
Date of creation: Mar 2007
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, March 2007, pages 1-38
Handle: RePEc:ctw:wpaper:9626

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Related research
Keywords: South Africa: education; unemployment; skills constraints;

Find related papers by JEL classification:
A1 - General Economics and Teaching - - General Economics

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Paul Cichello & Gary Fields & Murray Leibbrandt, 2003. "Earnings and Employment Dynamics for Africans in Post-apartheid South Africa: A Panel Study of KwaZulu-Natal," Working Papers 9646, University of Cape Town, Development Policy Research Unit. [Downloadable!]
  2. Geeta Kingdon & John Knight, 2007. "Unemployment in South Africa, 1995--2003: Causes, Problems and Policies," Journal of African Economies, Oxford University Press, vol. 16(5), pages 813-848, November. [Downloadable!] (restricted)
  3. Murray Leibbrandt & Haroon Bhorat, 1999. "Correlates of Vulnerability in the South African Labour Market," Working Papers 9695, University of Cape Town, Development Policy Research Unit. [Downloadable!]
  4. Servaas BERG & Onelle BURGER, 2003. "Education And Socio-Economic Differentials: A Study Of School Performance In The Western Cape," South African Journal of Economics, Economic Society of South Africa, vol. 71(3), pages 496-522, 09. [Downloadable!] (restricted)
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This page was last updated on 2009-12-5.


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