Does South African Affirmative Action Policy Reduce Poverty? a CGE Analysis

Hélène Maisonnave, Bernard Decaluwe () and Margaret Chitiga
Authors registered in the RePEc Author Service: Margaret Mabugu

Cahiers de recherche from CIRPEE

Abstract: This paper presents a computable general equilibrium model (CGEM) able to measure the impacts of the affirmative action policy set up in South Africa. In order to decrease inequalities inherited from the former regime, the government encourages firms to employ Historically Disadvantaged Persons (HDP). Through this study, we evaluate the impact of this policy on employment, poverty and inequality. To evaluate impacts on poverty and inequality, we use a CGE Top Down approach. The paper analyses two scenarios; the first one deals with the impact of affirmative action on skilled jobs. The second scenario adds to the previous by including semi skilled workers in the simulation. Both of these scenarios show a deep decrease in unemployment as well as a fall of poverty for each population groups.

Keywords: Computable General Equilibrium Model; Top Down Analysis; South Africa; Poverty; Inequality; Labor Market (search for similar items in EconPapers)
JEL-codes: D58 E27 I32 O11 O55 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-afr and nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Does South African Affirmative Action Policy Reduce Poverty? A CGE Analysis (2019)
Journal Article: Does South African Affirmative Action Policy Reduce Poverty? A CGE Analysis (2016)
Working Paper: Does South African Affirmative Action Policy Reduce Poverty? A CGE Analysis (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:lacicr:0936

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