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Wage polarization in a high-inequality emerging economy: The case of South Africa

Author

Listed:
  • Haroon Bhorat
  • Kezia Lilenstein
  • Morné Oosthuizen
  • Amy Thornton

Abstract

Earnings growth in South Africa displayed a U-shaped pattern across the earnings percentiles between 2000 and 2015, resembling wage polarization in the industrialized world. We investigate whether the drivers of this example of wage polarization in an emerging economy resemble those explored for industrialized ones. These are: skills-biased technical change; changing sectoral composition; the role of labour market institutions; and how occupational task content interacts with technology.

Suggested Citation

  • Haroon Bhorat & Kezia Lilenstein & Morné Oosthuizen & Amy Thornton, 2020. "Wage polarization in a high-inequality emerging economy: The case of South Africa," WIDER Working Paper Series wp-2020-55, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-55
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    References listed on IDEAS

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    1. Haroon Bhorat & Karmen Naidoo & Morné Oosthuizen & Kavisha Pillay, 2015. "Demographic, employment, and wage trends in South Africa," WIDER Working Paper Series wp-2015-141, World Institute for Development Economic Research (UNU-WIDER).
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    6. Martin Wittenberg, 2017. "Wages and Wage Inequality in South Africa 1994–2011: Part 2 – Inequality Measurement and Trends," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 298-318, June.
    7. Aalia Cassim & Kezia Lilenstein & Morne Oosthuizen & Francois Steenkamp, 2016. "Informality and Inclusive Growth in Sub-Saharan Africa," Working Papers 201602, University of Cape Town, Development Policy Research Unit.
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    Cited by:

    1. Faraaz Shahaboonin & Oladipo Olalekan David & Abigail Van Wyk, 2023. "Historic Spatial Inequality and Poverty along Racial Lines in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 102-111, January.
    2. Caitlin Allen Whitehead & Haroon Bhorat & Robert Hill & Tim Köhler & François Steenkamp, 2021. "The Potential Employment Implications of the Fourth Industrial Revolution Technologies: The Case of the Manufacturing, Engineering and Related Services Sector," Working Papers 202106, University of Cape Town, Development Policy Research Unit.

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    More about this item

    Keywords

    Inequality; Minimum wage; Recentered influence function; South Africa; Tasks; Wage polarization;
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