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The Evolution of the Racial Wage Hierarchy in Post- Apartheid South Africa

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  • Paul Allanson
  • Jonathan Atkins

Abstract

This article develops a multilateral decomposition procedure for the analysis of wage differentials and applies this to the evolution of the racial wage hierarchy in South Africa over the period 1993-2001. We find evidence that the wage position of the majority African workforce improved relative to all other racial groups immediately following the transition to democratic rule in 1994, but that these gains have been largely eroded in the ensuing years of the post-apartheid era. We review the range of policy initiatives that have been taken by the government since 1994 in the light of our empirical findings.

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Bibliographic Info

Paper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 136.

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Date of creation: Dec 2002
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Handle: RePEc:dun:dpaper:136

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  1. Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
  2. Deolalikar, A.B. & Evenson, R.E., 1988. "Technology Production And Technology Purchase In Indian Industry: An Econometric Analysis," Papers 556, Yale - Economic Growth Center.
  3. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  4. Mwabu, Germano & Schultz, T Paul, 2000. "Wage Premiums for Education and Location of South African Workers, by Gender and Race," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 307-34, January.
  5. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  6. Allanson, Paul & Atkins, Jonathan P & Hinks, Timothy, 2002. "No End to the Racial Wage Hierarchy in South Africa?," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 442-59, October.
  7. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
  8. Servaas van der Berg, 1999. "Social Policy to Address Poverty," Working Papers 99030, University of Cape Town, Development Policy Research Unit.
  9. Paul Allanson & Jonathan Atkins & Timothy Hinks, 1999. "A Multilateral Decomposition of Racial Wage Differentials in the 1994 South African Labour Market," Dundee Discussion Papers in Economics 099, Economic Studies, University of Dundee.
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Cited by:
  1. Timothy Hinks, 2008. "Poverty, networks and location: the determinants of job-search in South Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(2), pages 117-131.
  2. Timothy Hinks & Carola Gruen, 2005. "What is the Structure of South African Happiness Equations? Evidence from Quality of Life Surveys," Working Papers 16, Economic Research Southern Africa.
  3. Tomei, Manuela, 2005. "Affirmative action for racial equality : features, impact and challenges," ILO Working Papers 377476, International Labour Organization.

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