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Wage polarization in a high-inequality emerging economy: The case of South Africa

Haroon Bhorat (), Kezia Lilenstein, Morne Oosthuizen and Amy Thornton ()

No wp-2020-55, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Earnings growth in South Africa displayed a U-shaped pattern across the earnings percentiles between 2000 and 2015, resembling wage polarization in the industrialized world. We investigate whether the drivers of this example of wage polarization in an emerging economy resemble those explored for industrialized ones. These are: skills-biased technical change; changing sectoral composition; the role of labour market institutions; and how occupational task content interacts with technology.

Keywords: Inequality; Minimum wage; recentered influence function; South Africa; tasks; wage polarization (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-afr
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