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The effect of wage subsidies on job retention in a developing country: Evidence from South Africa

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  • Timothy Köhler
  • Haroon Bhorat
  • Robert Hill

Abstract

Wage subsidies served as a dominant labour market policy response around the world to mitigate job losses in response to the COVID-19 pandemic. However, no causal evidence of their effects exists for developing countries. We use unique panel labour force survey data and exploit a temporary institutional eligibility detail to estimate the causal effects of such a policy—the Temporary Employer/Employee Relief Scheme (TERS)—on job retention among formal private sector employees in South Africa.

Suggested Citation

  • Timothy Köhler & Haroon Bhorat & Robert Hill, 2023. "The effect of wage subsidies on job retention in a developing country: Evidence from South Africa," WIDER Working Paper Series wp-2023-114, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-114
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    References listed on IDEAS

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    Keywords

    COVID-19; Wage subsidy; Job destruction; South Africa; Labour market;
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