Wage Subsidy and Labour Market Flexibility in South Africa
We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid.
Volume (Year): 46 (2010)
Issue (Month): 9 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/FJDS20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/FJDS20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kingdon, Geeta Gandhi & Knight, John, 2004.
"Unemployment in South Africa: The Nature of the Beast,"
Elsevier, vol. 32(3), pages 391-408, March.
- Geeta Kingdon & John Knight, 2001. "Unemployment in South Africa: the nature of the beast," Economics Series Working Papers WPS/2001-15, University of Oxford, Department of Economics.
- Geeta Kingdon & John Knight, 2004. "Unemployment in South Africa: the nature of the beast," Labor and Demography 0409003, EconWPA.
- Geeta G. Kingdon & John B. Knight, 2001. "Unemployment in South Africa: The nature of the beast," CSAE Working Paper Series 2001-15, Centre for the Study of African Economies, University of Oxford.
- Go, Delfin S. & Kearney, Marna & Robinson, Sherman & Thierfelder, Karen, 2005. "An Analysis of South Africa's Value Added Tax," Policy Research Working Paper Series 3671, The World Bank.
- E. Paul Durrenberger, 2005. "Labour," Chapters, in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar Publishing.
- Philippe Aghion & Matias Braun & Johannes Fedderke, 2008.
"Competition and productivity growth in South Africa,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 16(4), pages 741-768, October.
- Aghion, Philippe & Braun, Matias & Fedderke, Johannes, 2008. "Competition and Productivity Growth in South Africa," Scholarly Articles 3350068, Harvard University Department of Economics.
- Philippe Aghion & Matias Braun & Johannes Fedderke, 2007. "Competition and Productivity Growth in South Africa," Working Papers 54, Economic Research Southern Africa.
- Dani Rodrik, 2006.
"Understanding South Africa's Economic Puzzles,"
NBER Working Papers
12565, National Bureau of Economic Research, Inc.
- Löfgren, Hans & Harris, Rebecca Lee & Robinson, Sherman, 2001. "A standard computable general equilibrium (CGE) model in GAMS," TMD discussion papers 75, International Food Policy Research Institute (IFPRI).
- Taryn Dinkelman & Farah Pirouz, 2002. "Individual, Household And Regional Determinants Of Labour Force Attachment In South Africa:," South African Journal of Economics, Economic Society of South Africa, vol. 70(5), pages 865-891, 06.
- A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
- D. Boccanfuso & F. Cabral & F. Cissé & A. Diagne & L. Savard, 2003. "Pauvreté et distribution de revenus au Sénégal: une approche par la modélisation en équilibre général calculable micro-simulé," Cahiers de recherche 0333, CIRPEE.
- Essama-Nssah, B. & Go, Delfin S. & Kearney, Marna & Korman, Vijdan & Robinson, Sherman & Thierfelder, Karen, 2007. "Economy-wide and distributional impacts of an oil price shock on the south African economy," Policy Research Working Paper Series 4354, The World Bank.
- Kalie Pauw & Lawrence Edwards, 2006.
"Evaluating The General Equilibrium Effects Of A Wage Subsidy Scheme For South Africa,"
South African Journal of Economics,
Economic Society of South Africa, vol. 74(3), pages 442-462, 09.
- Kalie Pauw & Lawrence Edwards, 2005. "Evaluating the general equilibrium effects of a wage subsidy scheme for South Africa," Working Papers 21, Economic Research Southern Africa.
- Stephen Nickell & Luca Nunziata & Wolfgang Ochel & Glenda Quintini, 2001.
"The Beveridge curve, unemployment and wages in the OECD from the 1960s to the 1990s - preliminary version,"
LSE Research Online Documents on Economics
20113, London School of Economics and Political Science, LSE Library.
- Stephen Nickell & Luca Nunziata & Wolfgang Ochel & Glenda Quintini, 2001. "The Beveridge Curve, Unemployment and Wages in the OECD from the 1960s to the 1990s - Preliminary Version," CEP Discussion Papers dp0502, Centre for Economic Performance, LSE.
- L Edwards, 2001. "Globalisation And The Skills Bias Of Occupational Employment In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 69(1), pages 40-71, 03.
- Richard Harris, 1983.
"Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition,"
524, Queen's University, Department of Economics.
- Harris, Richard, 1984. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review, American Economic Association, vol. 74(5), pages 1016-32, December.
- Morné Oosthuizen & Haroon Bhorat, 2005. "The Post-Apartheid South African Labour Market," Working Papers 05093, University of Cape Town, Development Policy Research Unit.
- Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zo� McLaren & Ingrid Woolard, 2008.
"Why has unemployment risen in the New South Africa?,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 16(4), pages 715-740, October.
- Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zoë McLaren & Ingrid Woolard, 2007. "Why Has Unemployment Risen in the New South Africa," NBER Working Papers 13167, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:46:y:2010:i:9:p:1481-1502. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.