A policy for the jobless youth in South Africa: Individual impacts of the Employment Tax Incentive

Amina Ebrahim and Jukka Pirttilä

No wp-2022-124, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper uses survey and tax administrative data to analyse the effects of a sizeable employer-borne payroll tax credit for young, low-wage workers in South Africa. We find limited impact of the wage subsidy on employment of young, low-wage workers relative to two comparison groups: slightly older, low-wage workers and slightly higher paid, young workers. We find evidence of increases in entry into employment and decreases in separations of low-wage youth, but these are too small to affect overall employment.

Keywords: Employment; Youth; Wage subsidy; Youth unemployment; South Africa (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-pub
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