How Might a National Minimum Wage Affect the Employment of Youth in South Africa?

How Might a National Minimum Wage Affect the Employment of Youth in South Africa?

Author: 
Patel, Leila
Place: 
Oxon
Publisher: 
Taylor and Francis
Date published: 
2020
Record type: 
Responsibility: 
Khan, Zoheb, jt. author
Englert, Thomas, jt. author
Journal Title: 
Development Southern Africa
Source: 
Development Southern Africa Vol 37 No 1 2020 pp 147-161
Abstract: 

Labour market policies such as National Minimum Wages (NMW) are widely used in different countries to reduce poverty and inequality. Given the high and rising rate of youth unemployment in South Africa, we ask the question: how might a NMW affect the labour market outcomes of employed and unemployed youth? The perspectives of employed and unemployed youth aged 18-25 years were solicited through focus group discussions in five provinces. The findings suggest that a NMW could benefit youth engaged in formal employment, it could stimulate job-seeking for discouraged work seekers and is unlikely to crowd out investments in further education. However, the vast majority of unemployed youth will probably not benefit from a NMW. This is due to the multiple and complex needs of disadvantaged youth. Other social interventions are needed to address the youth unemployment crisis.

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Country focus: 

CITATION: Patel, Leila. How Might a National Minimum Wage Affect the Employment of Youth in South Africa? . Oxon : Taylor and Francis , 2020. Development Southern Africa Vol 37 No 1 2020 pp 147-161 - Available at: https://library.au.int/frhow-might-national-minimum-wage-affect-employment-youth-south-africa