Why Has Unemployment Risen in the New South Africa

Abhijit Banerjee, Sebastian Galiani, James Levinsohn, Zoë McLaren and Ingrid Woolard

No 13167, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: J18 (search for similar items in EconPapers)
Date: 2007-06
New Economics Papers: this item is included in nep-afr, nep-dev and nep-lab
Note: ITI LS
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Citations: View citations in EconPapers (59)

Published as Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zoë McLaren & Ingrid Woolard, 2008. "Why has unemployment risen in the New South Africa?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 715-740, October.

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Journal Article: Why has unemployment risen in the New South Africa?1 (2008)
Working Paper: Why Has Unemployment Risen in the New South Africa? (2006)
Working Paper: Why Has Unemployment Risen in the New South Africa? (2006)
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