Does South African Affirmative Action Policy Reduce Poverty? A CGE Analysis

CIRPEE Working Paper 09-36

19 Pages Posted: 30 Oct 2009 Last revised: 16 Jul 2018

See all articles by Hélène Maisonnave

Hélène Maisonnave

Le Havre University; Université Laval; Centre Interuniversitaire sur le Risque, les Politiques Economiques et l'Emploi (CIRPÉE); Partnership for Economic Policy (PEP)

Bernard Decaluwe

Université Laval - Département d'Économique

M. Chitiga

University of Pretoria - Department of Economics

Date Written: August 27, 2009

Abstract

This paper presents a computable general equilibrium model (CGEM) able to measure the impacts of the affirmative action policy set up in South Africa. In order to decrease inequalities inherited from the former regime, the government encourages firms to employ Historically Disadvantaged Persons (HDP). Through this study, we evaluate the impact of this policy on employment, poverty and inequality. To evaluate impacts on poverty and inequality, we use a CGE Top Down approach. The paper analyses two scenarios; the first one deals with the impact of affirmative action on skilled jobs. The second scenario adds to the previous by including semi skilled workers in the simulation. Both of these scenarios show a deep decrease in unemployment as well as a fall of poverty for each population groups.

Keywords: Computable general equilibrium model, top down analysis, South Africa, poverty, inequality, labor market

JEL Classification: D58, E27, I32, O11, O55

Suggested Citation

Maisonnave, Hélène and Decaluwe, Bernard and Chitiga, Margaret Mabugu, Does South African Affirmative Action Policy Reduce Poverty? A CGE Analysis (August 27, 2009). CIRPEE Working Paper 09-36, Available at SSRN: https://ssrn.com/abstract=1462769 or http://dx.doi.org/10.2139/ssrn.1462769

Hélène Maisonnave (Contact Author)

Le Havre University ( email )

25 rue Philippe Lebon
Le Havre, 76600
France

Université Laval ( email )

2214 Pavillon J-A. DeSeve
Quebec, Quebec G1K 7P4
Canada

Centre Interuniversitaire sur le Risque, les Politiques Economiques et l'Emploi (CIRPÉE)

Pavillon De Sève
Ste-Foy, Quebec G1K 7P4
Canada

Partnership for Economic Policy (PEP)

P.O. Box 30772-00100
ICIPE - Duduville Campus, Kasarani
Nairobi
Kenya

Bernard Decaluwe

Université Laval - Département d'Économique ( email )

2325 Rue de l'Université
Ste-Foy, Quebec G1K 7P4 G1K 7P4
Canada
418-656-5561 (Phone)
418-656-7798 (Fax)

Margaret Mabugu Chitiga

University of Pretoria - Department of Economics ( email )

Lynnwood Road
Hillcrest
Pretoria 0002
South Africa

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