Achieving Employment Equity in the Public Service: a study of changes between 1995 and 2001
Significant declines in employment have coincided with trade liberalisation in South Africa stimulating many debates on possible causal relationships between the two. Existing research has, however, focussed on explaining employment trends rather than changes in the relative wage of less skilled to skilled labour. Further, the role of technology in influencing relative wages has been neglected. This paper draws upon standard international trade theory and analyses the relationship between trade, technology, factor supplies and the relative wage of less skilled workers in South Africa since 1970. The econometric results are in general weak. Nevertheless, a number of conclusions can be reached. Firstly, the rise in relative wage of less skilled workers since the early 1970s and into the 1990s is inconsistent with the view that trade liberalisation and skill biased technological change lie behind the dramatic decline in less skilled employment since the early 1980s. Secondly, there is weak evidence that tariff reductions and improvements in the real effective exchange rate have improved the relative wage of less skilled labour. Although the rise in relative wage of less skilled labour is consistent with these changes, the decline in employment of less skilled labour is not. These results suggest that the reason for the decline in employment of less skilled labour lie in other areas such as the labour market.
|Date of creation:||Jan 2002|
|Publication status:||Published in Working Paper Series by the Development Policy Research Unit, January 2002, pages 1-33|
|Contact details of provider:|| Postal: Private Bag X3, Rondebosch, 7701|
Phone: +27 21 650 5705
Fax: +27 21 650 5711
Web page: http://www.dpru.uct.ac.za
More information through EDIRC
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.:
- Eli Bekman & John Bound & Stephen Machin, 1998.
"Implications of Skill-Biased Technological Change: International Evidence,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 113(4), pages 1245-1279.
- Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," NBER Working Papers 6166, National Bureau of Economic Research, Inc.
- Berman, E. & Bound, J. & Machin, S., 1997. "Implications of Skill-Biased Technological Change: International Evidence," Papers 25, Centre for Economic Performance & Institute of Economics.
- Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Boston University - Institute for Economic Development 78, Boston University, Institute for Economic Development.
- E Berman & J Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," CEP Discussion Papers dp0367, Centre for Economic Performance, LSE.
- E. Berman & J. Bound & S. Machin, 1997. "Implications of skill-biased technological change: international evidence," LSE Research Online Documents on Economics 20314, London School of Economics and Political Science, LSE Library.
- Berman, Eli & Bound, John & Machin, Stephen, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Working Paper Series 486, Research Institute of Industrial Economics.
- Ethier, Wilfred, 1974. "Some of the theorems of international trade with many goods and factors," Journal of International Economics, Elsevier, vol. 4(2), pages 199-206, May.
- Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
- Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
- 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, 09.
- Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
- Slaughter, Matthew J, 1998. "International Trade and Labour-Market Outcomes: Results, Questions, and Policy Options," Economic Journal, Royal Economic Society, vol. 108(450), pages 1452-1462, September.
- Hanson, G.H. & Harrison, A., 1995. "Trade, Technology and Wage Inequality," Papers 95-20, Columbia - Graduate School of Business.
- Gordon H. Hanson & Ann Harrison, 1995. "Trade, Technology, and Wage Inequality," NBER Working Papers 5110, National Bureau of Economic Research, Inc.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ctw:wpaper:02060. 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: (Waseema Petersen)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.