Institutional Wage Effects: Revisiting Union and Bargaining Council Wage Premia in South Africa

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2011-12

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University of Cape Town


Development Policy Research Unit


University of Cape Town

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Development and Poverty Research Unit Working Paper Development Policy Research Unit Working Paper 11/146

Abstract
The literature on the union wage gap in South Africa is extensive, spanning a range of datasets and methodologies. There is however little consensus on the appropriate method to correct for the endogeneity of union membership or the size of the union wage gap. Furthermore, there are very few studies on the bargaining council wage premium in South Africa due to lack of data on coverage of employees under these agreements.
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