Race and the Incidence of Unemployment in South Africa

Geeta Kingdon · John B. Knight

135 citations0/0 files storedReview of Development Economics

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Labor market dynamics and wage inequality Unemployment and Economic Growth Names, Identity, and Discrimination Research

Abstract

Abstract South Africa's unemployment rate is one of the highest in the world, and it has important distributional implications. The paper examines both entry into and duration of unemployment using data for the mid‐1990s. A probit model of unemployment shows an important role for race, education, age, gender, home‐ownership, location, and numerous other variables, all of which have plausible explanations. The large race gap in unemployment is explored further by means of a decomposition analysis akin to that normally used to analyze wage discrimination. There remains a substantial residual which might represent unobserved characteristics, such as quality of education, or discrimination.

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References

1994On discrimination and the decomposition of wage differentials 1999School Inputs and Educational Outcomes in South Africa 1987Housing markets, unemployment and labour market flexibility in the UK 1990The Employment of Married Women in the United Kingdom 1970-83

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