Co-ordination Failure and Employment in South Africa
Working Paper
2004-06
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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 04/086
Abstract
South Africa lost more than 890,000 jobs, but saw an increase in the number of skilled workers from 1989 to 1999. We argue that this is the consequence of well-documented acute apartheid-era distortions which led to a current coordination failure where (i) firms are locked into a mostly skillintensive technology where they have very little demand for semi-skilled and unskilled labour, and (ii) there are too few semi-skilled and skilled blacks.
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Reference:
Fryer, D., Vencatachellum, D. 2004-06. Co-ordination Failure and Employment in South Africa. Development and Poverty Research Unit Working Paper Development Policy Research Unit Working Paper 04/086. University of Cape Town.