WP 13/161 - Do Industrial Disputes Reduce Employment? Evidence from South Africa
Haroon Bhorat, Elne Jacobs and Carlene van der Westhuizen
Date of Publication:
Theory predicts that an increase in employment protection may reduce employment levels by acting as a tax on firms by constraining hiring and firing decisions. We use a unique administrative database of the country’s dispute resolution body – the Commission for Conciliation, Mediation and Arbitration (CCMA) – to create a nuanced and empirically based measure of employment protection for the labour market in South Africa.