Exploring unemployment differentials between former and non-former homeland areas in South Africa: A decomposition approach

This study decomposes the unemployment rate gap between former and non-former homeland areas in South Africa. We apply the Oaxaca-Blinder [1973] decomposition technique to the 2011 population census community profiles at the main place level. Results indicate that former homeland areas suffer from relatively higher rates of unemployment compared to non-former homeland areas. The 24%-point difference is primarily explained by differences in former homeland area main place endowments. Interventions that improve educational attainment in former homeland areas and those that are sensitive to the labour market challenges faced by black South African youth and women are essential to alleviate the spatial gap.