WP 02/063 - A Decomposition of Growth of the Real Wage Rate for South Africa: 1970 - 2000

Author: 
Dipak Mazumdar and Dirk van Seventer

Date of Publication: 
March 2002

Abstract: 
This paper examines the potential trade-off between growth in employment and growth in wages. In order to assess the trade-off between employment growth and real wage growth, we make use of a simple decomposition model, following Mazumdar (2000), in which real wage growth is determined by growth in real value added, employment growth, a trend in the wage share of value added and a relative price effect.

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