AP - Labour Productivity In South Africa

Le Roux van Wyk and W.T. Nell

No 345480, 16th Congress, Cork, Ireland, July 15-20, 2007 from International Farm Management Association

Abstract: Research shows that worker output is not a constant and that labour productivity is internationally an important component of agricultural production. Labour productivity plays a prominent role in creating the competitiveness of a specific farming business and even the whole economy. This situation became a concern for farmers as the pressure to increase minimum wages escalated in recent times. In 2006, the South African Government announced a total increase in wages of 34, 59% over a three year period (2006–2008). It is basically impossible to increase productivity of labour to the same extent over this period. This paper examines labour productivity, the influence of increasing labour costs on profitability and sustainability, as well as how farmers must take this issue into account when production planning is done.

Keywords: Labor and Human Capital; Productivity Analysis (search for similar items in EconPapers)
Pages: 6
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma07:345480

DOI: 10.22004/ag.econ.345480

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