Prospective Analysis of a Wage Subsidy for Cape Town Youth
نویسندگان
چکیده
Persistently high youth unemployment is one of the most pressing problems in South Africa. The South African government has proposed an employer wage subsidy to address the issue. We prospectively analyze such a policy. Recognizing that a credible estimate of the policy’s impact requires a model of the labor market that itself generates high unemployment in equilibrium, we estimate a structural search model that incorporates both observed heterogeneity and measurement error in wages. Using the model to examine the impact of a wage subsidy, we find that a R1000/month wage subsidy paid to employers leads to an increase of R660 in mean accepted wages and a decrease of 15 percentage points in the share of youth experiencing long-term unemployment. JEL classification: J64; J68; O12.
منابع مشابه
The Youth Wage Subsidy in South Africa Response of the Congress of South African Trade Unions
1. The National Treasury document relies on international studies to justify its proposals on youth wage subsidies, or even employment subsidies. But careful reading of those studies reveals that they lean towards the COSATU position. Based on Treasury’s own literature which they used to propose this ill-conceived policy, we have shown that there are no empirical grounds for this policy. The ir...
متن کاملAn Evaluation of the Role of an Intermediate Care Facility in the Continuum of Care in Western Cape, South Africa
Background A comprehensive primary healthcare (PHC) approach requires clear referral and continuity of care pathways. South Africa is a lower-middle income country (LMIC) that lacks data on the role of intermediate care (IC) services in the health system. This study described the model of service provision at one facility in Cape Town, including reason for admission, the mix of services and ski...
متن کاملJALDA's Interview with Professor Nigel Love
Nigel Lowther Love is associate professor of linguistics at University of Cape Town. He was born in 1950 in the U.K. He received his B.A. (1973), M.A. (1976) and D. Phil. (1976) from Oxford University. His Ph.D. thesis title was: The generative phonological analysis of non-vocalic alternations in Modern French. Nigel Love has been the invited lecturer or conference speaker at universities in: A...
متن کاملChanging Trends in the Korean Youth Unemployment Crisis: 2004 â 2011
Koreaâs youth unemployment problem has continued to worsen since 2004. According to an E24, J64, an analysis of raw data from Statistics Koreaâs Economically Active Population Survey and Supplementary Results of the Economically Active Population Survey on Youths to confirm whether youth unemployment affects all youths, more youths were delaying graduation or taking leaves of absence due t...
متن کامل