feat(data): Add Go2010 study on wage subsidies

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@ -20955,7 +20955,7 @@ Lastly, there is a large gender heterogeneity, with women increasing their busin
doi = {10.1080/00220380903428456}, doi = {10.1080/00220380903428456},
abstract = {We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid.}, abstract = {We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid.},
unique-id = {WOS:000283552200001}, unique-id = {WOS:000283552200001},
keywords = {program::wage subsidy,region::SSA,relevance::unsure,sample::almp}, keywords = {done::extracted,region::SSA,sample::almp,type::subsidy},
note = {A study using a general equilibrium labor market model as well as a more micro-level household impact modeling to estimate the impact of an employment subsidy on South African unemployment reduction probabilities, as well as general earnings effects.\textbf{It predicts a positive but modest impact on employment with an increase in employment primarily for low-/semi-skilled labor, accompanied by reductions in poverty and inequality.\textbf{It also finds that the employment impacts majorly depend on the elasticity of substitution of the factors of production, primarily the relationship of skilled and unskilled labor.\textbf{If both are rigid complements in production, which the study suggests they are due to South Africa's lack of labor market flexibility, it may lead to an overall labor demand/supply rigidity which greatly hinders the impact of such an employment subsidy.}}}}, note = {A study using a general equilibrium labor market model as well as a more micro-level household impact modeling to estimate the impact of an employment subsidy on South African unemployment reduction probabilities, as well as general earnings effects.\textbf{It predicts a positive but modest impact on employment with an increase in employment primarily for low-/semi-skilled labor, accompanied by reductions in poverty and inequality.\textbf{It also finds that the employment impacts majorly depend on the elasticity of substitution of the factors of production, primarily the relationship of skilled and unskilled labor.\textbf{If both are rigid complements in production, which the study suggests they are due to South Africa's lack of labor market flexibility, it may lead to an overall labor demand/supply rigidity which greatly hinders the impact of such an employment subsidy.}}}},
timestamp = {2022-03-05T11:01:52Z}, timestamp = {2022-03-05T11:01:52Z},
file = {/home/marty/Zotero/storage/HRCKMFUU/Go2010_Wage_subsidy_and_labour_market_flexibility_in_south_africa.pdf} file = {/home/marty/Zotero/storage/HRCKMFUU/Go2010_Wage_subsidy_and_labour_market_flexibility_in_south_africa.pdf}

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author: Go, D. S., Kearney, M., Korman, V., Robinson, S., & Thierfelder, K.
year: 2010
title: Wage subsidy and labour market flexibility in south africa
publisher: Journal of development studies
uri: https://doi.org/10.1080/00220380903428456
pubtype: article
discipline: development
country: South Africa
period: 2003
maxlength:
targeting: implicit
group: low-/semi-skilled workers
data: GCE model based on 2003 LM data; Pauw & Edwards (2006)
design: simulation
method: micro-simulation; multi-sector, multi-labour computable general equilibrium model
sample: 43
unit: sector
representativeness: national
causal: 0 # 0 correlation / 1 causal
theory:
limitations: potentially reduced generalizability due to simulation's assumptions
observation:
- intervention: subsidy (wage)
institutional: 0
structural: 1
agency: 0
inequality: income
type: 0 # 0 vertical / 1 horizontal
indicator: 0 # 0 absolute / 1 relative
measures: Foster-Greer-Thorbecke (FGT) poverty headcount ratio
findings: overall decrease in FGT ratio, about 1.6% of households moving out of poverty; similar changes in urban/rural spaces; greater gains in poorer households
channels: income gains for poorer households
direction: -1 # -1 neg / 0 none / 1 pos
significance: 2 # 0 nsg / 1 msg / 2 sg
- intervention: subsidy (wage)
institutional: 0
structural: 1
agency: 0
inequality: income
type: 0 # 0 vertical / 1 horizontal
indicator: 0 # 0 absolute / 1 relative
measures: Gini coeff
findings: Overall reduction in income inequality (0.5 ppt), not significant effects
channels: income redistribution; increased formal employment for low-/medium-skill workers
direction: -1 # -1 neg / 0 none / 1 pos
significance: 0 # 0 nsg / 1 msg / 2 sg
notes:
annotation: |
A study modeling the effects of a targeted wage subsidy aimed at low- and medium-skilled workers and provided to their employers as an incentive for new job creations, looking at its effects on poverty and income inequality in South Africa.
The study finds that, using the Gini coefficient, the overall income inequality reduced by 0.5 percentage points, which provides an insignificant outcome.
This primarily occurs because of an overall income redistribution and especially an increase in formal employment for low- and medium-skill workers.
Using an absolute poverty headcount ratio, it finds that a significant 1.6 per cent of households move out of poverty, with similar changes observed across urban and rural spaces.
They attribute this primarily to income gains for poorer households and the targeting benefiting the poorest households most by providing them greater income gains.
Limitations of the study include the general equibilibrium model approach being potentially restricted by its prior assumptions in validity and generalizability, as well as potentially not accounting for unobservables or exogenous shocks.

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@ -893,7 +893,14 @@ It finds that while both decrease overall income inequality, measured through Gi
While provision of a UBI sustains aggregate demand, thereby spreading income in a more equitable manner, While provision of a UBI sustains aggregate demand, thereby spreading income in a more equitable manner,
working time reductions significantly decrease aggregate demand through lower individual income but significantly increases labour force participation and thus employment. working time reductions significantly decrease aggregate demand through lower individual income but significantly increases labour force participation and thus employment.
It also finds that through these channels of changing aggregate demand, the environmental outcomes are oppositional, with work time reduction decreasing and UBI increasing the overall ecological footprint. It also finds that through these channels of changing aggregate demand, the environmental outcomes are oppositional, with work time reduction decreasing and UBI increasing the overall ecological footprint.
One limitation of the study is the modeling assumption that workers will have to accept both lower income and lower consumption levels under a policy of work time reduction through stable labour market entry for the results to hold. One limitation of the study is the modelling assumption that workers will have to accept both lower income and lower consumption levels under a policy of work time reduction through stable labour market entry for the results to hold.
@Go2010 model the effects of a targeted wage subsidy aimed at low- and medium-skilled workers and provided to their employers as an incentive for new job creations, looking at its effects on poverty and income inequality in South Africa.
The study finds that, using the Gini coefficient, the overall income inequality reduced by 0.5 percentage points, which provides an insignificant outcome.
This primarily occurs because of an overall income redistribution and especially an increase in formal employment for low- and medium-skill workers.
Using an absolute poverty headcount ratio, it finds that a significant 1.6 per cent of households move out of poverty, with similar changes observed across urban and rural spaces.
They attribute this primarily to income gains for poorer households and the targeting benefiting the poorest households most by providing them greater income gains.
Limitations of the study include the general equilibrium model approach being potentially restricted by its prior assumptions in validity and generalizability, as well as potentially not accounting for unobservables or exogenous shocks.
### Automation and technological change ### Automation and technological change