WP 201404 - The Real Exchange Rate and Sectoral Employment in South Africa

Haroon Bhorat, Nan Tian and Mark Ellyne

Date of Publication: 
December 2014

Abstract:This paper examines the impact of exchange rate fluctuations on sectoral employment in South Africa from 1975 to 2009. A major focus is how exchange rate fluctuations impact on employment in South Africa’s formal non-agricultural sector. Another relevant factor to consider is the impact skills have on the employment-exchange rate elasticity Overall, following a real exchange rate appreciation, the results show strong support for a negative and significant employment decline in the tradable sector, limited evidence of a positive employment impact in the non-tradable sector and generally no effect on aggregate employment.  

Download Working Paper: DPRU WP 201404