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Employment, Wages and Skills Development: Firm Specific Effects - Evidence from Two Firm Surveys in South Africa

Author

Listed:
  • Haroon Bhorat
  • Paul Lundall

    (Development Policy Research Unit, University of Cape Town)

Abstract

The paper explores the inter and intra firm dynamics that are instrumental in shaping the determination of skills training within the South African labour market. The essential starting point is to show that the size of the enterprise and nature of the economic sector in which these enterprises operate, sets conditions on the regimes of enterprise training and skills development. While contesting the notion that there is inevitability in the outcome of these processes, the paper compels us to explore the reasons for it taking place in the present South African milieu. And this enables us to analyse the dynamic evolution of contractual obligations that are built on insecure and temporal employment relations. Consequently, the detour via the structural and organisation dynamics that are embedded within firms enables us to recognise the important role which training can command in promoting greater efficiencies within South African firms and halting the deleterious effects of insecurity and low productivity. The analysis leads us to the conclusion that training ultimately makes good business sense and more so if these sentiments are demonstrated and transmitted through active public policy.

Suggested Citation

  • Haroon Bhorat & Paul Lundall, 2002. "Employment, Wages and Skills Development: Firm Specific Effects - Evidence from Two Firm Surveys in South Africa," Working Papers 02068, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:02068
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    File URL: http://hdl.handle.net/11427/7199
    File Function: First version, 2002
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    References listed on IDEAS

    as
    1. Haroon Bhorat, 2004. "Labour Market Challenges In The Post‐Apartheid South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(5), pages 940-977, December.
    2. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214, Elsevier.
    3. William T. Dickens & Lawrence F. Katz, 1986. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc.
    4. Mark Doms & Timothy Dunne & Kenneth R. Troske, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 253-290.
    5. Jonker N. & Grip A. de, 1999. "Do employees with Flexible Contracts receive less Training?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    6. Jonker, N. & de Grip, A., 1999. "Do employees with flexible contracts receive less training?," ROA Research Memorandum 1E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Alberto Behar, 2004. "Estimates of labour demand elasticities and elasticities of substitution using firm-level manufacturing data," SALDRU/CSSR Working Papers 098, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Alberto Behar, 2005. "Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa," Economics Series Working Papers 244, University of Oxford, Department of Economics.
    3. Alberto Behar, 2010. "Would Cheaper Capital Replace Labour?," South African Journal of Economics, Economic Society of South Africa, vol. 78(2), pages 131-151, June.

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    More about this item

    Keywords

    South Africa: regimes of enterprise training and skills development;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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