Fiscal policy, labour market, and inequality: Diagnosing South Africa's anomalies in the shadow of racial discrimination

Giorgio d'Agostino, Francesco Giuli, Marco Lorusso and Margherita Scarlato

No wp-2020-122, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Inequality in South Africa is the enduring legacy of racial discrimination. We use a dynamic perspective to show the linkages between persistent effects of discrimination in the labour market and the efficacy of redistributive fiscal policy in reducing inequality. We present a machine-learning analysis based on household survey data in the Post-Apartheid Labour Market Series to predict the main drivers of the relationship between workers' heterogeneous socioeconomic characteristics, the behaviour of variables related to labour market status, and labour income inequality.

Keywords: Inequality; Discrimination; Job search; Labour market; Economic equilibrium; Search frictions (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dev
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