Coordination failure and employment in South Africa

Date

2003

Journal Title

Journal ISSN

Volume Title

Publisher

TIPS, Johannesburg, ZA

Abstract

Current research (2003) indicates South Africa is moving away from using semi-skilled labour towards skilled labour-intensive processes in the formal sector, and very low skilled work in the informal sector. This study addresses the evidence that no sector in South Africa has adopted a semi-skilled intensive technology. The paper argues this is the consequence of well-documented acute apartheid era distortions leading to a coordination failure where (i) firms are locked into a mostly skill-intensive technology where they have very little demand for semi-skilled and unskilled labour, and (ii) there are too few skilled and semi-skilled black workers.

Description

Keywords

EMPLOYMENT, APARTHEID, LABOUR MARKET, POLICY MAKING, SOUTH AFRICA, SKILLED WORKERS, METHODOLOGY, ECONOMETRIC ANALYSIS, SOUTH OF SAHARA, HUMAN CAPITAL, INDUSTRIAL POLICY

Citation

DOI