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...

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Main Authors:	Go, Delfin S., Kearney, Marna, Korman, Vijdan, Robinson, Sherman, Thierfelder, Karen
Format:	Journal Article
Language:	EN
Published:	2012
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

id	okr-10986-5786
recordtype	oai_dc
spelling	okr-10986-57862021-04-23T14:02:23Z 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
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	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
spellingShingle	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
geographic_facet	South Africa
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
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
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	2012
url	http://hdl.handle.net/10986/5786
_version_	1764396287016304640

Wage Subsidy and Labour Market Flexibility in South Africa

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