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How large is the wage penalty in the labour broker sector?: Evidence for South Africa using administrative data

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  • Aalia Cassim
  • Daniela Casale

Abstract

Public debate on the temporary employment services, or labour broker, sector in South Africa has focused on temporary workers' wages and benefits. Empirical research is limited: temporary employment services cannot be accurately identified in recent labour force surveys. In 2015, South Africa Revenue Services and the National Treasury made company and employee income tax data available which explicitly captures labour brokers and employee wages. We use this to examine whether there is a wage penalty for labour broker employees and, if so, its magnitude.

Suggested Citation

  • Aalia Cassim & Daniela Casale, 2018. "How large is the wage penalty in the labour broker sector?: Evidence for South Africa using administrative data," WIDER Working Paper Series wp-2018-48, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-48
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