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Racial Wage Discrimination in South Africa: Before and After the First Democratic Election

Author

Listed:
  • Gaute Erichsen
  • Jeremy Wakeford

    () (School of Economics, University of Cape Town)

Abstract

Apartheid in South Africa was formally discarded by the first free election in 1994. Prior to 1994, discrimination in the labour market was embodied in a number of policies (pass laws, occupational colour barring etc.). While such polices have been eliminated by the ANC government, it is likely that the eradication of racial wage discrimination altogether will be a lengthy process. In this working paper, racial wage discrimination is treated via a multilateral wage decomposition technique. Each observed wage differential is broken down into a productivity component and a discrimination component so that the extent of racial wage discrimination can be estimated. Using data collected just before 1993 and just after 1995 the first democratic election, it can be concluded that previous findings of long-term declining discrimination are reversed in the post-apartheid era.

Suggested Citation

  • Gaute Erichsen & Jeremy Wakeford, 2001. "Racial Wage Discrimination in South Africa: Before and After the First Democratic Election," Working Papers 01049, University of Cape Town, Development Policy Research Unit.
  • Handle: RePEc:ctw:wpaper:01049
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    File URL: http://www.dpru.uct.ac.za/sites/default/files/image_tool/images/36/DPRU%20WP01-049.pdf
    File Function: First version, 2001
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    References listed on IDEAS

    as
    1. Murray Leibbrandt & Haroon Bhorat, 1999. "Modelling Vulnerability and Low Earnings in the South African Labour Market," Working Papers 99032, University of Cape Town, Development Policy Research Unit.
    2. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    3. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
    4. Murray Leibbrandt & Haroon Bhorat, 1999. "Correlates of Vulnerability in the South African Labour Market," Working Papers 99027, University of Cape Town, Development Policy Research Unit.
    5. Haroon Bhorat, 2000. "The impact of trade and structural changes on sectoral employment in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 17(3), pages 437-466.
    6. H. Bhorat & J. Hodge, 1999. "Decomposing Shifts in Labour Demand in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 67(3), pages 155-168, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Geeta Gandhi Kingdon & John Knight, 2004. "Race and the Incidence of Unemployment in South Africa," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 198-222, May.

    More about this item

    Keywords

    South Africa: racial wage discrimination; labour market; labour market;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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