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| Title: | Inter-industry wage differentials: the wage-gap in South Africa |
| Author: | Smit, Minnette R. |
| Year: | 1996 |
| Periodical: | South African Journal of Economics |
| Volume: | 64 |
| Issue: | 1 |
| Pages: | 43-73 |
| Language: | English |
| Geographic term: | South Africa |
| Subjects: | wage differentials industry |
| External link: | https://doi.org/10.1111/j.1813-6982.1996.tb01113.x |
| Abstract: | In the South African labour economics debate the exceptional focus on racial wage inequalities and the role of apartheid policies has resulted in a neglect of research into other forms and causes of wage differentials. International studies of the causes of interindustry wage differentials indicate that certain industries pay higher wages to all categories of workers irrespective of race or gender. These studies suggest a positive relationship between product market concentration and higher wages. The present paper presents the initial results of an investigation into interindustry wage differentials in the South African labour market. First, it gives an overview of the literature on interindustry wage differentials, focusing on the importance given by the various schools of thought to product market structure as a causal factor in creating these differentials. Secondly, the results of previous studies are discussed. Thirdly, the product market characteristics of high wage firms in the manufacturing sector in South Africa are identified and analysed, highlighting the relative importance of product market concentration. Finally, a new perspective on wage gaps - in which industry characteristics rather than skills or race play a role - is presented. Bibliogr., notes, ref. |
