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Evaluating the general equilibrium effects of a wage subsidy scheme for South Africa

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  • Kalie Pauw
  • Lawrence Edwards

Abstract

Unemployment among semi- and unskilled workers has reached severe proportions (over 50 %) and threatens the political and economic stability of the South African economy. In this paper a computable general equilibrium (CGE) model of the South African economy to assess the economy-wide impact of a wage subsidy targeted at semi- and unskilled workers. We […]

Suggested Citation

  • Kalie Pauw & Lawrence Edwards, 2006. "Evaluating the general equilibrium effects of a wage subsidy scheme for South Africa," Working Papers 021, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:021
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    References listed on IDEAS

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    1. McDaniel, Christine A. & Balistreri, Edward J., 2002. "A Discussion on Armington Trade Substitution Elasticities," Working Papers 15856, United States International Trade Commission, Office of Economics.
    2. Thurlow, James & van Seventer, Dirk Ernst, 2002. "A standard computable general equilibrium model for South Africa," TMD discussion papers 100, International Food Policy Research Institute (IFPRI).
    3. Bill Gibson & Dirk Ernst Van Seventer, 2000. "A Tale of Two Models: Comparing structuralist and neoclassical computable general equilibrium models for South Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(2), pages 149-171.
    4. B Gibson, 2000. "Will Lower Wages Cause Faster Growth in South Africa?," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 24(3), pages 143-163, November.
    5. Adelman, Irma & Robinson, Sherman, 1988. "Macroeconomic adjustment and income distribution : Alternative models applied to two economies," Journal of Development Economics, Elsevier, vol. 29(1), pages 23-44, July.
    6. Daniel K. Mengisteab & Johannes W. Fedderke, 2016. "Estimating South Africa’s output gap and potential growth rate," Working Papers 21, Economic Research Southern Africa.
    7. Unknown, 2001. "General Discussion," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16839, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
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    Cited by:

    1. Rusmawati Said & Kamarul Hidayah Abdul Hamid & Nursyazwani Mazlan, 2020. "How Does Immigration Affect Wages and the Unemployment Rate in Malaysia? A Computable General Equilibrium (CGE) Approach," Asian Social Science, Canadian Center of Science and Education, vol. 16(11), pages 100-100, November.
    2. Seán M. Muller, 2021. "Evidence for a YETI? A Cautionary Tale from South Africa's Youth Employment Tax Incentive," Development and Change, International Institute of Social Studies, vol. 52(6), pages 1301-1342, November.
    3. Rob Davies & James Thurlow, 2010. "Formal–Informal Economy Linkages And Unemployment In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 78(4), pages 437-459, December.
    4. Delfin Go & Marna Kearney & Vijdan Korman & Sherman Robinson & Karen Thierfelder, 2010. "Wage Subsidy and Labour Market Flexibility in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1481-1502.
    5. Burns, Justine & Edwards, Lawrence & Pauw, Karl, 2010. "Wage subsidies to combat unemployment and poverty," IFPRI discussion papers 969, International Food Policy Research Institute (IFPRI).
    6. Levinsohn, James & Pugatch, Todd, 2014. "Prospective analysis of a wage subsidy for Cape Town youth," Journal of Development Economics, Elsevier, vol. 108(C), pages 169-183.
    7. Jacopo Zotti & Rosita Pretaroli & Francesca Severini & Claudio Socci & Giancarlo Infantino, 2020. "Employment incentives and the disaggregated impact on the economy. The Italian case," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 993-1032, October.
    8. Louise Roos, 2013. "Construction of a database for a dynamic CGE model for South Africa," Centre of Policy Studies/IMPACT Centre Working Papers g-234, Victoria University, Centre of Policy Studies/IMPACT Centre.

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    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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