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Unions and the Gender Wage Gap in South Africa

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  • Daniela Casale
  • Dorrit Posel

Abstract

Studies of the wage effects of unions in South Africa have been concerned largely with the impact of union membership on the wages of African and white male workers. Consistent with findings in the international literature, these studies have concluded that unions compress the distribution of wages in South Africa, and more specifically, that racial inequality is lower in the union sector than in the non-union sector. In this paper, we explore whether unions in South Africa are associated with comparable gender wage effects among African workers, using data collected in the nationally representative Labour Force Surveys. Contrary to initial expectations, we find that when wage estimations control for broad occupational sorting by gender in union and non-union employment, then the gender wage gap is larger in the union sector than in the non-union sector. We also consider how possible selection into union status affects our estimates, and demonstrate the difficulty of addressing this problem in the South African context by evaluating a variety of selection models. Copyright 2011 The author 2010. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.

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  • Daniela Casale & Dorrit Posel, 2011. "Unions and the Gender Wage Gap in South Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 20(1), pages 27-59, January.
    • Handle: RePEc:oup:jafrec:v:20:y:2011:i:1:p:27-59
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    File URL: http://hdl.handle.net/10.1093/jae/ejq029
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    Citations

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    Cited by:

    1. Mari Kangasniemi & Jukka Pirttilä, 2013. "Trade unions in the south and co-operation between unions in the South and in the North: A survey of the economics literature," Working Papers 285, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    2. Casale, Daniela & Posel, Dorrit, 2011. "English language proficiency and earnings in a developing country: The case of South Africa," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(4), pages 385-393, August.
    3. Danquah, Michael & Iddrisu, Abdul Malik & Boakye, Ernest Owusu & Owusu, Solomon, 2021. "Do gender wage differences within households influence women's empowerment and welfare? Evidence from Ghana," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 916-932.
    4. Jacqueline Mosomi, 2019. "Distributional changes in the gender wage gap in the post-apartheid South African labour market," WIDER Working Paper Series wp-2019-17, World Institute for Development Economic Research (UNU-WIDER).
    5. Haroon Bhorat & Sumayya Goga & Carlene Van Der Westhuizen, 2012. "Institutional Wage Effects: Revisiting Union And Bargaining Council Wage Premia In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 80(3), pages 400-414, September.
    6. Mattie Susan Landman & Neave O'Clery, 2020. "The impact of the Employment Equity Act on female inter-industry labour mobility and the gender wage gap in South Africa," WIDER Working Paper Series wp-2020-52, World Institute for Development Economic Research (UNU-WIDER).
    7. Kerr, Andrew & Wittenberg, Martin, 2021. "Union wage premia and wage inequality in South Africa," Economic Modelling, Elsevier, vol. 97(C), pages 255-271.
    8. Magejo, Prudence & Benhura, Miracle, 2015. "A Detailed Decomposition Analysis of the Public-Private Sector Wage Gap in South Africa," IZA Discussion Papers 9271, Institute of Labor Economics (IZA).
    9. Sirisha C. Naidu & Lyn Ossome, 2018. "Work, Gender, and Immiseration in South Africa and India," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(2), pages 332-348, June.
    10. Amina Ebrahim & Kezia Lilenstein, 2019. "Gender and the South African labour market: Policy relevant research possibilities using South African tax data," WIDER Working Paper Series wp-2019-31, World Institute for Development Economic Research (UNU-WIDER).

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