Labour market policy and poverty : exploring the macro-micro linkages of minimum wages and wage subsidies

Pauw, Karl

Labour market policy and poverty : exploring the macro-micro linkages of minimum wages and wage subsidies

Doctoral Thesis

2009

Publisher

University of Cape Town

Department

School of Economics

Faculty

Faculty of Commerce

Abstract

This study adds value to the South African literature on labour market policy evaluation and their poverty impacts in general, and minimum wages and wage subsidies in particular, both in terms of the theoretical and descriptive analyses provided. Various possible modelling approaches are explored, with careful consideration of the advantages and limitations of each. A rich set of model results is also generated. Under both the policies evaluated, the poverty outcome is shown to generally be positive but small. Furthermore, the outcome is highly sensitive to the wage elasticity of demand: while minimum wages tend to be more effective in reducing poverty when the wage elasticity is low, wage subsidies generate superior outcomes under a high wage elasticity scenario.

Description

Includes abstract.

Includes bibliographical references (p. 220-228).

Keywords

Economics

Reference:

Collections

PhD / Doctoral

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