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Trade Unions v. statistical discrimination : theory and application to Post-Apartheid South Africa

Author

Listed:
  • Sandrine Rospabé

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Paul Azam

    (ARQADE - Atelier de Recherche Quantitative Appliquée au Développement Economique - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse)

Abstract

A simple model of statistical discrimination is analyzed, which captures some stylized facts of the South African labor market. It shows that this type of discrimination disappears when the wage rates are determined by efficient bargaining between a representative firm and a union, with endogenous membership. This may explain why the wage gap between Black and White workers in post-apartheid South Africa is smaller among unionized workers than among non-unionized ones.

Suggested Citation

  • Sandrine Rospabé & Jean-Paul Azam, 2007. "Trade Unions v. statistical discrimination : theory and application to Post-Apartheid South Africa," Post-Print halshs-00109384, HAL.
    • Handle: RePEc:hal:journl:halshs-00109384
    DOI: 10.1016/j.jdeveco.2005.12.005
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    Citations

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    Cited by:

    1. Haroon Bhorat & Carlene van der Westhuizen & Sumayya Goga, 2009. "Analysing Wage Formation in the South African Labour Market: The Role of Bargaining Councils," Working Papers 09135, University of Cape Town, Development Policy Research Unit.
    2. Mari Kangasniemi & Jukka Pirttilä, 2013. "Trade unions in the south and co-operation between unions in the South and in the North: A survey of the economics literature," Working Papers 285, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    3. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    4. Paula Armstrong & Janca Steenkamp, 2008. "South African Trade Unions: an Overview for 1995 to 2005," Working Papers 10/2008, Stellenbosch University, Department of Economics.
    5. Haroon Bhorat & Sumayya Goga & Carlene Van Der Westhuizen, 2012. "Institutional Wage Effects: Revisiting Union And Bargaining Council Wage Premia In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 80(3), pages 400-414, September.
    6. Julien Picault, 2013. "Unionization and Labour-market Discrimination: A Closer Look at Non-unionized Workers," LABOUR, CEIS, vol. 27(3), pages 272-287, September.
    7. Jirjahn, Uwe, 2025. "Unions and Collective Bargaining in Sub-Saharan Africa: Some Insights from Quantitative Studies," GLO Discussion Paper Series 1550, Global Labor Organization (GLO).
    8. Haroon Bhorat & Natasha Mayet, 2012. "Employment Outcomes and Returns to Earnings in Post-Apartheid South Africa," Working Papers 12152, University of Cape Town, Development Policy Research Unit.
    9. Erten, Bilge & Leight, Jessica & Tregenna, Fiona, 2019. "Trade liberalization and local labor market adjustment in South Africa," Journal of International Economics, Elsevier, vol. 118(C), pages 448-467.
    10. Minas Vlassis & Nick Drydakis, 2012. "Wage discrimination and antidiscrimination policy in unionized industries," Journal of Economics, Springer, vol. 105(1), pages 45-62, January.
    11. Miracle Ntuli & Prudence Kwenda, 2013. "Labour Unions and Wage Inequality Among African Men in South Africa," Working Papers 13159, University of Cape Town, Development Policy Research Unit.

    More about this item

    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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