South African labor markets: Adjustments and inequalities

Type Working Paper - World Bank Informal Discussion Papers on Aspects of the Economy of South Africa
Title South African labor markets: Adjustments and inequalities
Issue 12
Publication (Day/Month/Year) 1998
URL Contact for a copy of this paper
The study focuses on labor market behavior in the light of disappointing employment growth and considerable wage inequality. Its main empirical conclusions are:
i) that rising unemployment can only be partly explained by rising wages; ii) labor markets for skilled workers operate much better than for the unskilled; and iii) wage differentials associated with non-economic characteristics are large by international standards. The study reviews and is broadly supportive of recent labor legislation. It argues, however, that a broad policy framework that goes far beyond labor market interventions is needed to improve employment growth and reduce inequality.

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