A SUPPLY AND DEMAND ANALYSIS OF REGULAR BLACK LABOUR IN NATAL

E. T. Latt and W. L. Nieuwoudt

Agrekon, 1985, vol. 24, issue 2

Abstract: The aim of this study was to obtain reliable, consistent estimates of the supply and demand functions for regular Black agricultural labour in Natal. The joint determination of the wage rate and the number of workers necessitated the use of a simultaneous estimating procedure. The Two Stage Least Squares method was used. The results appeared consistent with a priori estimates. A demand elasticity close to unity was found while the supply curve appeared very elastic. Competition was shown to exist between the agricultural and non-agricultural sectors in the labour market. Since the demand curve was not inelastic, and the supply curve was very elastic, it is debatable whether unskilled agricultural labourers would be able to increase their long-run real wages through trade union action. Sociopolitical considerations, although important, were not considered. Trends in the wage rate and employment were studied. It was also shown that the agricultural control measures do not assist the labourers through increased wages.

Keywords: Demand and Price Analysis; Labor and Human Capital (search for similar items in EconPapers)
Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267081

DOI: 10.22004/ag.econ.267081

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