Estimating the Causal Effect of Enforcement on Minimum Wage Compliance : The Case of South Africa
Working Paper
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 11/145
Abstract
This paper attempts to estimate the causal effect of government enforcement on compliance with minimum wages in South Africa, a country where considerable non-compliance exists. The number of labour inspectors per capita is used as a proxy for enforcement, whilst non-compliance is measured using an index of violation that measures both the proportion of individuals violated, as well as the average depth of individual violation.
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Bhorat, H., Kanbur, R., Mayet, N. 2011-12. Estimating the Causal Effect of Enforcement on Minimum Wage Compliance : The Case of South Africa. Development and Poverty Research Unit Working Paper Development Policy Research Unit Working Paper 11/145. University of Cape Town.