The cost of rigidity: The case of the South African labor market

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

The South African labor market has been characterized by high and persistent levels of unemployment, and a poor capacity to create jobs. This paper examines existing evidence on what rigidities have generated this outcome. Pricing power in output markets, as well as labor supply and demand side rigidities are all found to have contributed, resulting in excessive increases in real wage costs which under conditions of relatively low economic growth, has produced a stagnant labor market. Policy requirements are the pursuit of stonger economic growth and reductions in real labor costs.

Original languageEnglish (US)
Pages (from-to)809-842
Number of pages34
JournalComparative Economic Studies
Volume54
Issue number4
DOIs
StatePublished - Dec 1 2012

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Labour market
Rigidity
Economic growth
Costs
Africa
Real wages
Labor
Labour costs
Market power
Unemployment

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

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The cost of rigidity : The case of the South African labor market. / Fedderke, Johannes Wolfgang.

In: Comparative Economic Studies, Vol. 54, No. 4, 01.12.2012, p. 809-842.

Research output: Contribution to journalArticle

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