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Wage inequality, firm characteristics, and firm wage premia in South Africa

Author

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  • Shakeba Foster

Abstract

This paper investigates the role of firm characteristics in driving wage inequality and firm wage premia in the South African labour market. The Abowd, Kramarz, and Margolis (AKM) and Kline, Saggio, and Sølvsten (KSS) regression-based decomposition methods are applied to matched employer-employee administrative tax data for the period 2011-19. Additionally, the Theil index is used as a comparative tool for estimating wage inequality, given that the variance of logarithms applied in the regression-based decomposition methods has been established as an imprecise measure of inequality.

Suggested Citation

  • Shakeba Foster, 2023. "Wage inequality, firm characteristics, and firm wage premia in South Africa," WIDER Working Paper Series wp-2023-131, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-131
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2023-131-wage-inequality-firm-characteristics-firm-wage-premia-South-Africa.pdf
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    References listed on IDEAS

    as
    1. Clemens Ohlert, 2016. "Establishment heterogeneity, rent sharing and the rise of wage inequality in Germany," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(2), pages 210-228, May.
    2. Marlies Piek & Dieter von Fintel, 2020. "Sectoral minimum wages in South Africa: Disemployment by firm size and trade exposure," Development Southern Africa, Taylor & Francis Journals, vol. 37(3), pages 462-482, May.
    3. Amina Ebrahim & Friedrich Kreuser & Michael Kilumelume, 2021. "The guide to the CIT-IRP5 panel version 4.0," WIDER Working Paper Series wp-2021-173, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

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