An Operational Guide to The Estimation Of The Economic Opportunity Cost Of Labour In South Africa

Hasan Ali Biçak (), Glenn Jenkins (), Chun-Yan Kuo () and M Benjamin Mphahlele ()
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Hasan Ali Biçak: Rauf Dentas University, North Cyprus.
Chun-Yan Kuo: Department of Economics, Queen's University, Kingston, Ontario K7L 3N6, Canada
M Benjamin Mphahlele: Limpopo Economic Development Agency, Limpopo Province, South Africa.

No 2004-08, Development Discussion Papers from JDI Executive Programs

Abstract: IN MOST COUNTRIES THE GOAL OF JOB creation is of paramount political importance. From an economic perspective, however, the benefit of job creation by a project is measured by the amount that the wage bill exceeds the economic opportunity cost of the labour employed. Unlike the economic opportunity cost of capital and the economic cost of foreign exchange, no single national parameter can be estimated for the economic opportunity cost of labour (EOCL). The EOCL varies by occupation, by skill level, by working environment, by labour market condition, and by region. The objective of this paper is to develop a framework with examples that will serve as a guide for the estimation of the EOCLs across a range of circumstances typical of South Africa.

Keywords: :Economic Opportunity Cost; Labour; South Africa (search for similar items in EconPapers)
JEL-codes: J3 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2004-08
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Citations: View citations in EconPapers (5)

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