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Human Capital Constraints in South Africa: A Firm-Level Analysis

Author

Listed:
  • Ewert P. J. Kleynhans

    (School of Economics, North-West University, South Africa)

  • Johannes Riaan Labuschagne

    (School of Economics, North-West University, South Africa)

Abstract

This paper examines human capital constraints in the South African economy, and the austerity of these constraints on firms in the country. The two key human capital constraints explored in this article are the inadequately educated workforce and labour market distortions. Regression analysis was applied to examine determinants of increased labour productivity in manufacturing firms. Education and labour market distortions were found to have a varying influence on output per worker. Principal Component Analysis (pca) of the explanatory variables achieved similar results. This study found that the highest percentage of the total variance is explained by latent variables that incorporate education, training, compensation, region and Sector Education Training Authority (seta) support and effectiveness.

Suggested Citation

  • Ewert P. J. Kleynhans & Johannes Riaan Labuschagne, 2012. "Human Capital Constraints in South Africa: A Firm-Level Analysis," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(1 (Spring), pages 69-86.
    • Handle: RePEc:mgt:youmgt:v:10:y:2012:i:1:p:069-086
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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/10_069-086.pdf
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    References listed on IDEAS

    as
    1. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 323-350, National Bureau of Economic Research, Inc.
    2. Haroon Bhorat & Paul Lundall, 2004. "Employment, Wages And Skills Development: Firm‐Specific Effects — Evidence From A Firm Survey In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(5), pages 1023-1056, December.
    3. Checchi,Daniele, 2008. "The Economics of Education," Cambridge Books, Cambridge University Press, number 9780521066464, January.
    4. Andreas Wörgötter & Christopher Loewald & Konstantin Makrelov, 2021. "Addressing low labour utilisation in South Africa," Working Papers 27, Economic Research Southern Africa.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rulof P. Burger & Francis J. Teal, 2015. "The Effect of Schooling on Worker Productivity: Evidence from a South African Industry Panel," Journal of African Economies, Centre for the Study of African Economies, vol. 24(5), pages 629-644.
    2. Ohikhuare Obaika & Oyewole Oluwatomisin & Adedeji Adedayo, 2022. "Public Health Investment, Human Capital Accumulation, and Labour Productivity: Evidence from West Africa," Zagreb International Review of Economics and Business, Sciendo, vol. 25(2), pages 139-163.

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    More about this item

    Keywords

    human capital constraints; productivity; efficiency; labour; education; manufacturing; South Africa;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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