Why Has Unemployment Risen in the New South Africa

61 Pages Posted: 27 Jun 2007 Last revised: 25 Jun 2010

See all articles by Abhijit V. Banerjee

Abhijit V. Banerjee

Massachusetts Institute of Technology (MIT) - Department of Economics

Sebastian Galiani

University of Maryland - Department of Economics

James A. Levinsohn

University of Michigan; National Bureau of Economic Research (NBER)

Zoe McLaren

University of Michigan at Ann Arbor - School of Public Health

Ingrid Woolard

University of Cape Town - Faculty of Commerce - School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 2007

Abstract

We document the rise in unemployment in South Africa since the transition in 1994. We describe the likely causes of this increase and analyze whether the increase in unemployment is due to structural changes in the economy (resulting in a new equilibrium unemployment rate) or to negative shocks (that temporarily have increased unemployment). We conclude the former are more important. Our analysis includes a multinomial logit approach to understanding transitions in individual-level changes in labor market status using the first nationally representative panel in South Africa. Our analysis highlights several key constraints to addressing unemployment in South Africa.

Suggested Citation

Banerjee, Abhijit V. and Galiani, Sebastian and Levinsohn, James A. and McLaren, Zoe and Woolard, Ingrid, Why Has Unemployment Risen in the New South Africa (June 2007). Available at SSRN: https://ssrn.com/abstract=993069

Abhijit V. Banerjee (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Sebastian Galiani

University of Maryland - Department of Economics ( email )

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James A. Levinsohn

University of Michigan ( email )

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National Bureau of Economic Research (NBER)

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Zoe McLaren

University of Michigan at Ann Arbor - School of Public Health ( email )

1415 Washington Heights
Ann Arbor, MI 48109-2029
United States

Ingrid Woolard

University of Cape Town - Faculty of Commerce - School of Economics ( email )

PO Box 15494
Emerald Hill 6011
South Africa

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