Wage Subsidy and Labour Market Flexibility in South Africa
We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid.
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Format: | Journal Article biblioteca |
Language: | EN |
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2010
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Subjects: | Human Capital, Skills, Occupational Choice, Labor Productivity J240, Wage Level and Structure, Wage Differentials J310, Wages, Compensation, and Labor Costs: Public Policy J380, Economic Development: Human Resources, Human Development, Income Distribution, Migration O150, |
Online Access: | http://hdl.handle.net/10986/5786 |
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dig-okr-1098657862021-04-23T14:02:23Z Wage Subsidy and Labour Market Flexibility in South Africa Go, Delfin S. Kearney, Marna Korman, Vijdan Robinson, Sherman Thierfelder, Karen Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid. 2012-03-30T07:34:32Z 2012-03-30T07:34:32Z 2010 Journal Article Journal of Development Studies 00220388 http://hdl.handle.net/10986/5786 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article South Africa |
institution |
Banco Mundial |
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Estados Unidos |
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America del Norte |
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Biblioteca del Banco Mundial |
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EN |
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Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 |
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Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Go, Delfin S. Kearney, Marna Korman, Vijdan Robinson, Sherman Thierfelder, Karen Wage Subsidy and Labour Market Flexibility in South Africa |
description |
We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid. |
format |
Journal Article |
topic_facet |
Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 |
author |
Go, Delfin S. Kearney, Marna Korman, Vijdan Robinson, Sherman Thierfelder, Karen |
author_facet |
Go, Delfin S. Kearney, Marna Korman, Vijdan Robinson, Sherman Thierfelder, Karen |
author_sort |
Go, Delfin S. |
title |
Wage Subsidy and Labour Market Flexibility in South Africa |
title_short |
Wage Subsidy and Labour Market Flexibility in South Africa |
title_full |
Wage Subsidy and Labour Market Flexibility in South Africa |
title_fullStr |
Wage Subsidy and Labour Market Flexibility in South Africa |
title_full_unstemmed |
Wage Subsidy and Labour Market Flexibility in South Africa |
title_sort |
wage subsidy and labour market flexibility in south africa |
publishDate |
2010 |
url |
http://hdl.handle.net/10986/5786 |
work_keys_str_mv |
AT godelfins wagesubsidyandlabourmarketflexibilityinsouthafrica AT kearneymarna wagesubsidyandlabourmarketflexibilityinsouthafrica AT kormanvijdan wagesubsidyandlabourmarketflexibilityinsouthafrica AT robinsonsherman wagesubsidyandlabourmarketflexibilityinsouthafrica AT thierfelderkaren wagesubsidyandlabourmarketflexibilityinsouthafrica |
_version_ |
1756571659902386176 |