60 lines
2.9 KiB
YAML
60 lines
2.9 KiB
YAML
cite: Go2010
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author: Go, D. S., Kearney, M., Korman, V., Robinson, S., & Thierfelder, K.
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year: 2010
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title: Wage subsidy and labour market flexibility in south africa
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publisher: Journal of development studies
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uri: https://doi.org/10.1080/00220380903428456
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pubtype: article
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discipline: development
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country: South Africa
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period: 2003
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maxlength:
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targeting: implicit
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group: low-/semi-skilled workers
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data: GCE model based on 2003 LM data; Pauw & Edwards (2006)
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design: simulation
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method: micro-simulation; multi-sector, multi-labour computable general equilibrium model
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sample: 43
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unit: sector
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representativeness: national
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causal: 0 # 0 correlation / 1 causal
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theory:
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limitations: potentially reduced generalizability due to simulation's assumptions
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observation:
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- intervention: subsidy (wage)
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institutional: 0
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 0 # 0 absolute / 1 relative
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measures: Foster-Greer-Thorbecke (FGT) poverty headcount ratio
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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
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channels: income gains for poorer households
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direction: -1 # -1 neg / 0 none / 1 pos
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significance: 2 # 0 nsg / 1 msg / 2 sg
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- intervention: subsidy (wage)
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institutional: 0
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 0 # 0 absolute / 1 relative
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measures: Gini coeff
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findings: Overall reduction in income inequality (0.5 ppt), not significant effects
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channels: income redistribution; increased formal employment for low-/medium-skill workers
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direction: -1 # -1 neg / 0 none / 1 pos
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significance: 0 # 0 nsg / 1 msg / 2 sg
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notes:
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annotation: |
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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.
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The study finds that, using the Gini coefficient, the overall income inequality reduced by 0.5 percentage points, which provides an insignificant outcome.
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This primarily occurs because of an overall income redistribution and especially an increase in formal employment for low- and medium-skill workers.
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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.
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They attribute this primarily to income gains for poorer households and the targeting benefiting the poorest households most by providing them greater income gains.
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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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