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The Evolution of the Racial Wage Hierarchy in Post- Apartheid South Africa

  • Paul Allanson
  • Jonathan Atkins

This article develops a multilateral decomposition procedure for the analysis of wage differentials and applies this to the evolution of the racial wage hierarchy in South Africa over the period 1993-2001. We find evidence that the wage position of the majority African workforce improved relative to all other racial groups immediately following the transition to democratic rule in 1994, but that these gains have been largely eroded in the ensuing years of the post-apartheid era. We review the range of policy initiatives that have been taken by the government since 1994 in the light of our empirical findings.

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File URL: http://www.dundee.ac.uk/media/dundeewebsite/economicstudies/documents/discussion/DDPE_136.pdf
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Paper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 136.

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Date of creation: Dec 2002
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Handle: RePEc:dun:dpaper:136
Contact details of provider: Postal: Dundee, DD1 4HN
Phone: (01382) 344375
Fax: (01382) 344691
Web page: http://www.dundee.ac.uk/econman/
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  1. Deolalikar, Anil B & Evenson, Robert E, 1989. "Technology Production and Technology Purchase in Indian Industry: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 689-92, November.
  2. P. Allanson & J. Atkins & T. Hinks, 2000. "A Multilateral Decomposition of Racial Wage Differentials in the 1994 South African Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 93-120.
  3. Mwabu, Germano & Schultz, T Paul, 2000. "Wage Premiums for Education and Location of South African Workers, by Gender and Race," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 307-34, January.
  4. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
  5. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  6. Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
  7. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  8. Servaas van der Berg, 1999. "Social Policy to Address Poverty," Working Papers 99030, University of Cape Town, Development Policy Research Unit.
  9. Allanson, Paul & Atkins, Jonathan P & Hinks, Timothy, 2002. "No End to the Racial Wage Hierarchy in South Africa?," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 442-59, October.
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