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Human Capital Constraints in South Africa: A Firm-Level Analysis

Ewert Kleynhans and Johannes Riaan Labuschagne
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Johannes Riaan Labuschagne: School of Economics, North-West University, South Africa

Managing Global Transitions, 2012, vol. 10, issue 1 (Spring), 69-86

Abstract: This paper examines human capital constraints in the South African economy, and the austerity of these constraints on firms in the country. The two key human capital constraints explored in this article are the inadequately educated workforce and labour market distortions. Regression analysis was applied to examine determinants of increased labour productivity in manufacturing firms. Education and labour market distortions were found to have a varying influence on output per worker. Principal Component Analysis (pca) of the explanatory variables achieved similar results. This study found that the highest percentage of the total variance is explained by latent variables that incorporate education, training, compensation, region and Sector Education Training Authority (seta) support and effectiveness.

Keywords: human capital constraints; productivity; efficiency; labour; education; manufacturing; South Africa (search for similar items in EconPapers)
JEL-codes: D24 J24 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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