Why Has Unemployment Risen in the New South Africa?
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2006-12-14
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Banerjee, Abhijit et al.; Why Has Unemployment Risen in the New South Africa? ; International Policy Center, Series Number 35, 14 December, 2006; https://deepblue.lib.umich.edu/bitstream/handle/2027.42/55749/IPC-working-paper-mclaren-035.pdf?sequence=4
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Abstract
We document the rise in unemployment in South Africa since the transition in
1994. We describe the likely causes of this increase and analyze whether the increase in
unemployment is due to structural changes in the economy (resulting in a new
equilibrium unemployment rate) or to negative shocks (that temporarily have increased
unemployment.) We conclude the former are more important. Our analysis includes a
multinomial logit approach to understanding transitions in individual-level changes in
labor market status using the first nationally representative panel in South Africa. Our
analysis highlights several key constraints to addressing unemployment in South Africa.