A Multilateral Decomposition of Racial Wage Differentials in the 1994 South African Labour Market
AbstractThis article develops a new multilateral decomposition procedure for the analysis of wage differentials and applies this to the racial wage hierarchy in the South African labour market. Using micro-data on male workers from the 1994 October Household survey, it is found that whites received the highest wages followed by Asians, then coloureds and finally blacks. Productivity differences are shown to explain approximately two-thirds of the white and black wage differentials, with the unexplained residuals attributable to discriminatory overpayment of whites and underpayment of blacks, and virtually all of the Asian and coloured differentials. The results provide the basis for a discussion of post-apartheid policy initiatives to tackle racial inequalities in the labour market.
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Bibliographic InfoPaper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 099.
Date of creation: Sep 1999
Date of revision:
Other versions of this item:
- P. Allanson & J. Atkins & T. Hinks, 2000. "A Multilateral Decomposition of Racial Wage Differentials in the 1994 South African Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 93-120.
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