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Type Working Paper - Economic Research Southern Africa
Title Unemployment and labour force participation in South Africa: A focus on the supply-side
Issue 28
Publication (Day/Month/Year) 2011
Page numbers 1-29
We provide an analytical framework for explaining how individuals without jobs end up in di¤erent labour market states. We extend a simple search model to explain why some unemployed individuals choose to search and others choose not to search. We use this descriptive model to identify factors that could influence an individual’s rational decision to be in a particular labour market state. It further highlights the idea of di¤erent degrees of labour force attachment. Different degrees of labour force attachment may imply both different intensities of searching and di¤erent degrees of responsiveness to given changes in the labour market environment.

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