South Africa Labor Market Dynamics and Inequality

This paper analyzes the determinants of high unemployment in South Africa by studying labor market dynamics using individual level panel data from the Quarterly Labor Force Survey. While prior work experience and gender are found to be important determinants of the job-finding rate, education attain...

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Bibliographic Details
Main Author: Anand, Rahul
Other Authors: Kothari, Siddharth, Kumar, Naresh
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2016
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a South Africa  |b Labor Market Dynamics and Inequality  |c Rahul Anand, Siddharth Kothari, Naresh Kumar 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2016 
300 |a 37 pages 
651 4 |a South Africa 
653 |a Labor Turnover 
653 |a Labour 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Trade unions 
653 |a Labor-Management Relations, Trade Unions, and Collective Bargaining: General 
653 |a Unemployment 
653 |a Labor markets 
653 |a Aggregate Labor Productivity 
653 |a Demand and Supply of Labor: General 
653 |a Aggregate Human Capital 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a Labor 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Vacancies 
653 |a Layoffs 
653 |a Labor market 
653 |a Wages 
653 |a Labor unions 
653 |a Unemployment rate 
653 |a Economic theory 
653 |a Intergenerational Income Distribution 
653 |a Income economics 
653 |a Employment 
700 1 |a Kothari, Siddharth 
700 1 |a Kumar, Naresh 
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520 |a This paper analyzes the determinants of high unemployment in South Africa by studying labor market dynamics using individual level panel data from the Quarterly Labor Force Survey. While prior work experience and gender are found to be important determinants of the job-finding rate, education attainment and race are important determinants of the job-exit rate. Using stock-flow equations, counterfactual exercises are conducted to quantify the role of these different transition rates on unemployment. The paper also explores the contribution of unemployment towards inequality. Reducing unemployment is found to be important for reducing inequality – estimates suggest that a 10 percentage point reduction in unemployment lowers the Gini coefficient by 3 percent. Achieving a similar reduction solely through transfers would require a 40 percent increase in government transfers