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The Evolution of the Racial Wage Hierarchy in Post-Apartheid South Africa

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  • Paul Allanson
  • Jonathan Atkins

Abstract

This article develops a multilateral decomposition procedure for the analysis of wage differentials and applies this to the evolution of the racial wage hierarchy in South Africa over the period 1993-2001. We find evidence that the wage position of the majority African workforce improved relative to all other racial groups immediately following the transition to democratic rule in 1994, but that these gains have been largely eroded in the ensuing years of the post-apartheid era. We review the range of policy initiatives that have been taken by the government since 1994 in the light of our empirical findings.

Suggested Citation

  • Paul Allanson & Jonathan Atkins, 2005. "The Evolution of the Racial Wage Hierarchy in Post-Apartheid South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(6), pages 1023-1050.
    • Handle: RePEc:taf:jdevst:v:41:y:2005:i:6:p:1023-1050
    DOI: 10.1080/00220380500155270
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    1. P. Allanson & J. Atkins & T. Hinks, 2000. "A Multilateral Decomposition of Racial Wage Differentials in the 1994 South African Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 93-120, October.
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    8. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    9. Paul Allanson & Jonathan P. Atkins & Timothy Hinks, 2002. "No End to the Racial Wage Hierarchy in South Africa?," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 442-459, October.
    10. Donohue, John J, III & Heckman, James, 1991. "Continuous versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1603-1643, December.
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    12. repec:bla:econom:v:65:y:1998:i:258:p:263-84 is not listed on IDEAS
    13. Mwabu, Germano & Schultz, T Paul, 2000. "Wage Premiums for Education and Location of South African Workers, by Gender and Race," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 307-334, January.
    14. George Sherer, 2000. "Intergroup Economic Inequality in South Africa: The Post-apartheid Era," American Economic Review, American Economic Association, vol. 90(2), pages 317-321, May.
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    Cited by:

    1. Timothy Hinks, 2008. "Poverty, networks and location: the determinants of job-search in South Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(2), pages 117-131.
    2. repec:ilo:ilowps:377476 is not listed on IDEAS
    3. Sloczynski, Tymon, 2018. "Average Gaps and Oaxaca's Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," IZA Discussion Papers 12041, Institute of Labor Economics (IZA).
    4. Constantine, Collin, 2024. "Income inequality in Guyana: Class or ethnicity? New evidence from survey data," World Development, Elsevier, vol. 173(C).
    5. Allanson, Paul, 2014. "Income stratification and the measurement of interdistributional inequality between multiple groups," SIRE Discussion Papers 2015-34, Scottish Institute for Research in Economics (SIRE).
    6. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2015. "Determinants of public education expenditure: evidence from Indian states," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 6(1), pages 1-19.
    7. Timothy Hinks & Carola Gruen, 2007. "What is the Structure of South African Happiness Equations? Evidence from Quality of Life Surveys," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 82(2), pages 311-336, June.
    8. Erten, Bilge & Leight, Jessica & Tregenna, Fiona, 2019. "Trade liberalization and local labor market adjustment in South Africa," Journal of International Economics, Elsevier, vol. 118(C), pages 448-467.
    9. Tymon Słoczyński, 2020. "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 73(3), pages 705-729, May.
    10. Allanson, Paul, 2014. "Income stratification and the measurement of interdistributional inequality between multiple groups," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-34, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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