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Wage inequality, firm characteristics, and firm wage premia in South Africa

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  • Shakeba Foster

Abstract

This paper investigates the role of firm characteristics in driving wage inequality and firm wage premia in the South African labour market. The Abowd, Kramarz, and Margolis (AKM) and Kline, Saggio, and Sølvsten (KSS) regression-based decomposition methods are applied to matched employer-employee administrative tax data for the period 2011-19. Additionally, the Theil index is used as a comparative tool for estimating wage inequality, given that the variance of logarithms applied in the regression-based decomposition methods has been established as an imprecise measure of inequality.

Suggested Citation

  • Shakeba Foster, 2023. "Wage inequality, firm characteristics, and firm wage premia in South Africa," WIDER Working Paper Series wp-2023-131, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-131
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    References listed on IDEAS

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    8. Daniel Schaefer & Carl Singleton, 2020. "Recent Changes in British Wage Inequality: Evidence from Large Firms and Occupations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(1), pages 100-125, February.
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