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A Study of the Wage Impacts of Unions and Industrial Councils in South Africa

Author

Listed:
  • Kristin F. Butcher

    (Boston College and MacArthur Foundation)

  • Cecilia Elena Rouse

    (Princeton University and NBER)

Abstract

Some argue that a high union wage premium and the industrial council system are important causes of inflexibility in the South African labor market. We estimate union premia on the order of 20 percent for African workers and 10 percent for White workers. We also find that African nonunion workers who are covered by industrial council agreements receive a premium of 6-10 percent; the premium is positive but not statistically significant for Whites. In addition, although the union gap is smaller inside of the industrial council system than outside of the system for Africans, the total union premium for union members covered by an industrial council agreement is similar to the union premium outside of the industrial council system. Among Africans, the industrial council and union wage gaps are largest among low wage workers.

Suggested Citation

  • Kristin F. Butcher & Cecilia Elena Rouse, 2000. "A Study of the Wage Impacts of Unions and Industrial Councils in South Africa," Working Papers 821, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:442
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    Citations

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    Cited by:

    1. Sukti DASGUPTA, 2002. "Attitudes towards trade unions in Bangladesh, Brazil, Hungary and Tanzania," International Labour Review, International Labour Organization, vol. 141(4), pages 413-440, December.
    2. Paula Armstrong & Janca Steenkamp, 2008. "South African Trade Unions: an Overview for 1995 to 2005," Working Papers 10/2008, Stellenbosch University, Department of Economics.

    More about this item

    Keywords

    South Africa;

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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