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Job Creation and Destruction in South Africa

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  • Andrew Kerr

    () (DataFirst, University of Cape Town)

  • Martin Wittenberg

    () (DataFirst, University of Cape Town)

  • Jairo Arrow

Abstract

Analysts of the South African labour market have predominantly used household surveys to analyse the labour market. It has been more difficult to explore labour demand from the fi rm side, as a result of limited data from relatively small cross sectional firm surveys, mainly funded by the World Bank. We use the Quarterly Employment Survey conducted by Statistics South Africa that allows us to explore how South African enterprises create and destroy jobs, shedding light on many of the policy questions that are relevant in a high unemployment society like SouthAfrica. We find job creation and destruction rates are similar to those found in OECD countries. There is little evidence that labour legislation creates rigidities that prevent firms from hiring or firing workers.We also find that larger firms are better net creators of jobs than small firms and that net job creation rates are negative in manufacturing, consistent with work using household surveys. Our research has important policy implications - particularly for the National Planning Commission's suggestion that new jobs will come mainly from small and medium sized fi rms. Our research suggests this is not likely without changes to policy or legislation. This is a joint SALDRU/DataFirst Working Paper

Suggested Citation

  • Andrew Kerr & Martin Wittenberg & Jairo Arrow, 2013. "Job Creation and Destruction in South Africa," SALDRU Working Papers 092, Southern Africa Labour and Development Research Unit, University of Cape Town.
  • Handle: RePEc:ldr:wpaper:092
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    References listed on IDEAS

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    Cited by:

    1. Vincent Dadam and Nicola Viegi, 2015. "Labour Market and Monetary Policy in South Africa," Working Papers 551, Economic Research Southern Africa.
    2. Rahul Anand & Siddharth Kothari & Naresh Kumar, 2016. "South Africa; Labor Market Dynamics and Inequality," IMF Working Papers 16/137, International Monetary Fund.
    3. Mulalo Mamburu, 2017. "Defining high-growth firms in South Africa," WIDER Working Paper Series 107, World Institute for Development Economic Research (UNU-WIDER).
    4. Andrew Kerr, 2016. "Job flows, worker flows, and churning in South Africa," WIDER Working Paper Series 037, World Institute for Development Economic Research (UNU-WIDER).
    5. Isaacs, Gilad, 2014. "The myth of “neutrality” and the rhetoric of “stability”: macroeconomic policy in democratic South Africa," MPRA Paper 54426, University Library of Munich, Germany.

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