Real Wages, Employment and Macroeconomic Policy in a Structuralist Model for South Africa Get Access Arrow

Real Wages, Employment and Macroeconomic Policy in a Structuralist Model for South Africa Get Access Arrow

Author: 
Gibson, B.
Place: 
Oxford
Publisher: 
Oxford University Press
Date published: 
2000
Record type: 
Responsibility: 
Van Seventer, D., jt. author
Journal Title: 
Journal of African Economies
Source: 
Journal of African Economies Volume 9 Issue 4 Dec 2000 pp. 512–546
Abstract: 

It is now commonplace to argue that in South Africa, like many developing countries, higher wages will lower employment. This paper shows that it is difficult to extricate the relationship between wages, employment and output from the macropolicy environment. Dynamic computable general equilibrium simulations show that the employment effects of nominal wage increases depends on induced monetary and fiscal policy when there is monetary 'policy dominance'. While wage-led growth is inefficient, increasing the wages of unskilled workers can improve the distribution of income, when the induced changes are neutralised.

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CITATION: Gibson, B.. Real Wages, Employment and Macroeconomic Policy in a Structuralist Model for South Africa Get Access Arrow . Oxford : Oxford University Press , 2000. Journal of African Economies Volume 9 Issue 4 Dec 2000 pp. 512–546 - Available at: https://library.au.int/real-wages-employment-and-macroeconomic-policy-structuralist-model-south-africa-get-access-arrow