The effect of wage subsidies on job retention in a developing country: Evidence from South Africa

Timothy Köhler (), Haroon Bhorat and Robert Hill

No wp-2023-114, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Wage subsidies served as a dominant labour market policy response around the world to mitigate job losses in response to the COVID-19 pandemic. However, no causal evidence of their effects exists for developing countries. We use unique panel labour force survey data and exploit a temporary institutional eligibility detail to estimate the causal effects of such a policy—the Temporary Employer/Employee Relief Scheme (TERS)—on job retention among formal private sector employees in South Africa.

Keywords: COVID-19; Wage subsidy; Job destruction; South Africa; Labour market (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-dev and nep-ger
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Citations: View citations in EconPapers (2)

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