Assessing the effects of two agricultural minimum wage shocks in South Africa

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dc.contributor.advisorBhorat, Haroonen_ZA
dc.contributor.authorVan der Zee, Kirstenen_ZA
dc.date.accessioned2017-10-03T14:17:10Z
dc.date.available2017-10-03T14:17:10Z
dc.date.issued2017en_ZA
dc.description.abstractIn March of 2003, South Africa's first agricultural minimum wage was implemented. Ten years later, following major strikes and protests among farm workers in theWestern Cape, the prescribed agricultural minimum wage was increased by a considerable 52 percent from R69 per day to R105 per day, significantly more than the usual inflation rate increases. This paper investigates the impacts of these two minimum wage shocks, specifically assessing the labour market response in terms of employment, wages and working conditions, as well as assessing how farmers adjusted their operations in expectation of the minimum wage hike. The findings indicate that the probability of employment as a farm worker decreased in response to both minimum wage shocks, however the disemployment effect was sharper for the introduction of the minimum wage than it was for the 2013 amendment. It is observed that relatively more part-time workers lost their jobs in response to the first shock, resulting in there being almost no part-time workers in the sector by the time the second minimum wage shock occurred. Wages increased significantly in response to both minimum wage shocks, however despite this, violation consistently remained a challenge in the sector. Lastly, the paper finds that employment, wages and contract coverage began adjusting up to two quarters prior to the 2013 legislated increase in the minimum wage, suggesting that there are dynamic responses to minimum wages, and that farmers may make operational decisions in expectation of new legislation.en_ZA
dc.identifier.apacitationVan der Zee, K. (2017). <i>Assessing the effects of two agricultural minimum wage shocks in South Africa</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/25504en_ZA
dc.identifier.chicagocitationVan der Zee, Kirsten. <i>"Assessing the effects of two agricultural minimum wage shocks in South Africa."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2017. http://hdl.handle.net/11427/25504en_ZA
dc.identifier.citationVan der Zee, K. 2017. Assessing the effects of two agricultural minimum wage shocks in South Africa. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Van der Zee, Kirsten AB - In March of 2003, South Africa's first agricultural minimum wage was implemented. Ten years later, following major strikes and protests among farm workers in theWestern Cape, the prescribed agricultural minimum wage was increased by a considerable 52 percent from R69 per day to R105 per day, significantly more than the usual inflation rate increases. This paper investigates the impacts of these two minimum wage shocks, specifically assessing the labour market response in terms of employment, wages and working conditions, as well as assessing how farmers adjusted their operations in expectation of the minimum wage hike. The findings indicate that the probability of employment as a farm worker decreased in response to both minimum wage shocks, however the disemployment effect was sharper for the introduction of the minimum wage than it was for the 2013 amendment. It is observed that relatively more part-time workers lost their jobs in response to the first shock, resulting in there being almost no part-time workers in the sector by the time the second minimum wage shock occurred. Wages increased significantly in response to both minimum wage shocks, however despite this, violation consistently remained a challenge in the sector. Lastly, the paper finds that employment, wages and contract coverage began adjusting up to two quarters prior to the 2013 legislated increase in the minimum wage, suggesting that there are dynamic responses to minimum wages, and that farmers may make operational decisions in expectation of new legislation. DA - 2017 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - Assessing the effects of two agricultural minimum wage shocks in South Africa TI - Assessing the effects of two agricultural minimum wage shocks in South Africa UR - http://hdl.handle.net/11427/25504 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/25504
dc.identifier.vancouvercitationVan der Zee K. Assessing the effects of two agricultural minimum wage shocks in South Africa. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2017 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/25504en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherApplied Economicsen_ZA
dc.titleAssessing the effects of two agricultural minimum wage shocks in South Africaen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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