Are Wage Adjustments an Effective Mechanism for Poverty Alleviation? Some Simulations for Domestic and Farm Workers

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2000-09

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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 00/041

Abstract
This paper utilises a basic simulation exercise to analyse the possible poverty and employment reducing effects, of instituting a minimum wage in the South African labour market. The simulation is undertaken for three groups of unskilled workers, namely domestic workers, farm workers and drivers.
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