How Much Labor Do South African Exports Contain?

Like many emerging economies, South Africa has identified exports as an engine for more inclusive, job-intensive growth. However, employment growth did not follow the substantial export growth that South Africa experienced in the 2000s. This paper...

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Main Authors: Cali, Massimiliano, Hollweg, Claire H.
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/544181493128206993/How-much-labor-do-South-African-exports-contain
http://hdl.handle.net/10986/26474
id okr-10986-26474
recordtype oai_dc
spelling okr-10986-264742021-06-08T14:42:45Z How Much Labor Do South African Exports Contain? Cali, Massimiliano Hollweg, Claire H. LABOR COMPENSATION GLOBAL VALUE CHAIN LABOR CONTENT EXPORT DIVERSIFICATION INCLUSIVE GROWTH JOB-INTENSIVE GROWTH LABOR INPUTS SKILLED LABOR Like many emerging economies, South Africa has identified exports as an engine for more inclusive, job-intensive growth. However, employment growth did not follow the substantial export growth that South Africa experienced in the 2000s. This paper uses a newly developed World Bank database -- the Labor Content of Exports -- to show that the composition of South Africa's export growth helps to understand the weak relationship between export and employment growth. Minerals exports, which propelled export as well as wage growth, are not job intensive and as a result supported far less job growth. Minerals have also increasingly become an enclave sector with few backward linkages to the domestic economy. In contrast, manufacturing exports support jobs and wages primarily in input-providing sectors, where indirect manufacturing employment is nearly 4.5 times greater than direct manufacturing employment. The paper also documents a shift in the labor content of global value chain–intensive manufacturing sectors away from direct manufacturing to indirect services. Such a shift has been biased toward skilled labor. As a results of these trends, labor in services sectors has been the main beneficiary of South Africa's export growth, absorbing more than half of the growth in wage income from exports over the 2000s, primarily by supplying inputs to other sectors' exports. 2017-04-26T22:34:23Z 2017-04-26T22:34:23Z 2017-04 Working Paper http://documents.worldbank.org/curated/en/544181493128206993/How-much-labor-do-South-African-exports-contain http://hdl.handle.net/10986/26474 English en_US Policy Research Working Paper;No. 8037 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa South Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic LABOR COMPENSATION
GLOBAL VALUE CHAIN
LABOR CONTENT
EXPORT DIVERSIFICATION
INCLUSIVE GROWTH
JOB-INTENSIVE GROWTH
LABOR INPUTS
SKILLED LABOR
spellingShingle LABOR COMPENSATION
GLOBAL VALUE CHAIN
LABOR CONTENT
EXPORT DIVERSIFICATION
INCLUSIVE GROWTH
JOB-INTENSIVE GROWTH
LABOR INPUTS
SKILLED LABOR
Cali, Massimiliano
Hollweg, Claire H.
How Much Labor Do South African Exports Contain?
geographic_facet Africa
South Africa
relation Policy Research Working Paper;No. 8037
description Like many emerging economies, South Africa has identified exports as an engine for more inclusive, job-intensive growth. However, employment growth did not follow the substantial export growth that South Africa experienced in the 2000s. This paper uses a newly developed World Bank database -- the Labor Content of Exports -- to show that the composition of South Africa's export growth helps to understand the weak relationship between export and employment growth. Minerals exports, which propelled export as well as wage growth, are not job intensive and as a result supported far less job growth. Minerals have also increasingly become an enclave sector with few backward linkages to the domestic economy. In contrast, manufacturing exports support jobs and wages primarily in input-providing sectors, where indirect manufacturing employment is nearly 4.5 times greater than direct manufacturing employment. The paper also documents a shift in the labor content of global value chain–intensive manufacturing sectors away from direct manufacturing to indirect services. Such a shift has been biased toward skilled labor. As a results of these trends, labor in services sectors has been the main beneficiary of South Africa's export growth, absorbing more than half of the growth in wage income from exports over the 2000s, primarily by supplying inputs to other sectors' exports.
format Working Paper
author Cali, Massimiliano
Hollweg, Claire H.
author_facet Cali, Massimiliano
Hollweg, Claire H.
author_sort Cali, Massimiliano
title How Much Labor Do South African Exports Contain?
title_short How Much Labor Do South African Exports Contain?
title_full How Much Labor Do South African Exports Contain?
title_fullStr How Much Labor Do South African Exports Contain?
title_full_unstemmed How Much Labor Do South African Exports Contain?
title_sort how much labor do south african exports contain?
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/544181493128206993/How-much-labor-do-South-African-exports-contain
http://hdl.handle.net/10986/26474
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