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How flexible are wages in response to local unemployment in South Africa?

Abstract:

It is commonly claimed that the South African labor market is unusually inflexible owing to the strength of the unions and the system of centralized collective bargaining. One aspect of labor market inflexibility concerns the responsiveness of wages to local unemployment. Examining this spatial relationship, we find that the elasticity of wages to local unemployment rates in South Africa is -0.1, similar to that found in other countries, including the US and the UK. This is striking because S...

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Publisher:
GPRG
Series:
Working Paper Series
Publication date:
2005-04-01
Language:
English
UUID:
uuid:8b63ca08-0939-4ce3-ab8f-cbc00421e394
Local pid:
oai:economics.ouls.ox.ac.uk:14068
Deposit date:
2011-08-15

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