Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa
AbstractCommentators claim that a shortage of skills in South Africa is constraining output and that a rise in skill supply would benefit less skilled occupations. This assumes or implies skilled and unskilled labour are complements. Hicks Elasticities of Complementarity and elasticities of factor price are estimated between capital and five occupations. The results show that skilled/artisanal and unskilled labour are complements while semi-skilled and unskilled labour are substitutes. These results allow for imperfectly elastic product demand, rigid wages and inference on highly non-linear elasticities. Aggregated estimates suggest More skilled labour complements Less skilled labour.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 244.
Date of creation: 01 Aug 2005
Date of revision:
Hicks Elasticity of Complementarity; South Africa; Training; Skill;
Other versions of this item:
- Alberto Behar, 2008. "Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa," Working Papers 73, Economic Research Southern Africa.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-AFR-2006-03-18 (Africa)
- NEP-ALL-2006-03-18 (All new papers)
- NEP-HRM-2006-03-18 (Human Capital & Human Resource Management)
- NEP-LAB-2006-03-18 (Labour Economics)
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