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The effect of wage subsidies on job retention: Evidence from South Africa during the COVID-19 pandemic

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  • Timothy Köhler
  • Robert Hill
  • Haroon Bhorat

Abstract

Wage subsidies have served as a primary labour market policy used around the world to mitigate job losses in response to the COVID-19 pandemic. In South Africa, where unemployment is among the highest globally, the Temporary Employer-Employee Relief Scheme supported millions of workers in a far-reaching and progressive manner.

Suggested Citation

  • Timothy Köhler & Robert Hill & Haroon Bhorat, 2022. "The effect of wage subsidies on job retention: Evidence from South Africa during the COVID-19 pandemic," WIDER Working Paper Series wp-2022-114, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-114
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    References listed on IDEAS

    as
    1. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," The World Bank Research Observer, World Bank, vol. 32(2), pages 127-154.
    2. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," The World Bank Economic Review, World Bank, vol. 17(1), pages 1-25, June.
    3. Helen Barnes & Gabriel Espi-Sanchis & Murray Leibbrandt & David McLennan & Michael Noble & Jukka Olavi Pirttilä & Wynnona Steyn & Brenton Van Vrede & Gemma Wright, 2021. "Analysis of the Distributional Effects of COVID-19 and State-led Remedial Measures in South Africa," International Journal of Microsimulation, International Microsimulation Association, vol. 14(2), pages 2-31.
    4. 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.
    5. Kerr, Andrew & Wittenberg, Martin, 2021. "Union wage premia and wage inequality in South Africa," Economic Modelling, Elsevier, vol. 97(C), pages 255-271.
    6. Joshua Budlender & Amina Ebrahim, 2021. "Estimating employment responses to South Africa's Employment Tax Incentive," WIDER Working Paper Series wp-2021-118, World Institute for Development Economic Research (UNU-WIDER).
    7. Vimal Ranchhod, 2006. "The Effect Of The South African Old Age Pension On Labour Supply Of The Elderly," South African Journal of Economics, Economic Society of South Africa, vol. 74(4), pages 725-744, December.
    8. Keenan, Enda & Lydon, Reamonn, 2020. "Wage subsidies and job retention," Economic Letters 11/EL/20, Central Bank of Ireland.
    9. Vimal Ranchhod & Reza Che Daniels, 2021. "Labour Market Dynamics in South Africa at the Onset of the COVID‐19 Pandemic," South African Journal of Economics, Economic Society of South Africa, vol. 89(1), pages 44-62, March.
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    Cited by:

    1. Köhler, Timothy & Bhorat, Haroon & Hill, Robert & Stanwix, Benjamin, 2023. "Lockdown stringency and employment formality: evidence from the COVID-19 pandemic in South Africa," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-3.

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