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A Decomposition of Growth of the Real Wage Rate for South Africa: 1970-2000

Author

Listed:
  • Dipak Mazumdar
  • Dirk van Seventer

    (Trade and Industrial Policy Strategies)

Abstract

This paper examines the potential trade-off between growth in employment and growth in wages. In order to assess the trade-off between employment growth and real wage growth, we make use of a simple decomposition model, following Mazumdar (2000), in which real wage growth is determined by growth in real value added, employment growth, a trend in the wage share of value added and a relative price effect.

Suggested Citation

  • Dipak Mazumdar & Dirk van Seventer, 2002. "A Decomposition of Growth of the Real Wage Rate for South Africa: 1970-2000," Working Papers 02063, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:02063
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    File URL: http://hdl.handle.net/11427/7204
    File Function: First version, 2002
    Download Restriction: no
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    Citations

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    Cited by:

    1. Martin Wittenberg, 2017. "Wages and Wage Inequality in South Africa 1994–2011: Part 1 – Wage Measurement and Trends," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 279-297, June.
    2. Wittenberg, Martin., 2014. "Analysis of employment, real wage, and productivity trends in South Africa since 1994," ILO Working Papers 994847703402676, International Labour Organization.
    3. Sparrow, G.N. & Ortmann, Gerald F. & Lyne, Michael C. & Darroch, Mark A.G., 2008. "Determinants of the demand for regular farm labour in South Africa, 1960-2002," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(1), pages 1-24, March.
    4. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers 63, Southern Africa Labour and Development Research Unit, University of Cape Town.
    5. repec:ilo:ilowps:484770 is not listed on IDEAS

    More about this item

    Keywords

    South Africa: real wage growth; 'price effect'; labour; skill group;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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