A Study of the Wage Impacts of Unions and Industrial Councils in South Africa
Kristin Butcher and
Cecilia Rouse
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Cecilia Rouse: Princeton University and NBER
No 821, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.
Abstract:
Some argue that a high union wage premium and the industrial council system are important causes of inflexibility in the South African labor market. We estimate union premia on the order of 20 percent for African workers and 10 percent for White workers. We also find that African nonunion workers who are covered by industrial council agreements receive a premium of 6-10 percent; the premium is positive but not statistically significant for Whites. In addition, although the union gap is smaller inside of the industrial council system than outside of the system for Africans, the total union premium for union members covered by an industrial council agreement is similar to the union premium outside of the industrial council system. Among Africans, the industrial council and union wage gaps are largest among low wage workers.
Keywords: South; Africa (search for similar items in EconPapers)
JEL-codes: J50 J51 (search for similar items in EconPapers)
Date: 2000-07
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:indrel:442
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