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The Determinants of Earnings Inequalities: Panel Data Evidence from KwaZulu-Natal, South Africa

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  • Andrew Kerr
  • Francis Teal

Abstract

In this article we analyse the relative importance of individual ability and labour market institutions, including public sector wage setting and trade unions, in determining earnings differences across different types of employment. To do this we use the KwaZulu-Natal Income Dynamics Study panel data from South Africa, which show extremely large average earnings differentials across different types of employment. Our results suggest that human capital and individual ability explain much of the earnings differentials within the private sector, but cannot explain the very large premiums for public sector workers.

Suggested Citation

  • Andrew Kerr & Francis Teal, 2015. "The Determinants of Earnings Inequalities: Panel Data Evidence from KwaZulu-Natal, South Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 24(4), pages 530-558.
    • Handle: RePEc:oup:jafrec:v:24:y:2015:i:4:p:530-558.
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    File URL: http://hdl.handle.net/10.1093/jae/ejv006
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    Cited by:

    1. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    2. Kerr, Andrew & Wittenberg, Martin, 2021. "Union wage premia and wage inequality in South Africa," Economic Modelling, Elsevier, vol. 97(C), pages 255-271.

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