Paths to employment expansion in a minerals economy

Altman, M.

doi:10.1007/s12132-001-0009-3

Cited by 5 publications

(7 citation statements)

References 24 publications

(13 reference statements)

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“…In reality, the potential for mass employment through labour-intensive exports in a middleincome economy like South Africa is quite limited. According to Altman (2001), reliance on a labour-intensive export strategy is unrealistic in a middle-income economy since firms then need to have a policy of paying low wages in order to remain competitive.…”

Section: Implications For Labour Demandmentioning

confidence: 99%

South Africa's economic policies on unemployment: A historical analysis of two decades of transition

Ferreira

Rossouw

2016

J. econ. financ. sci.

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Upon South Africa’s transition to democracy in 1994, there were great hopes for an economic revival in the country, underpinned by supportive economic policies that prioritised job creation and the elimination of longstanding poverty and inequality. Until now, the efficacy of economic policy in bringing about these much-coveted outcomes – particularly improvements on the employment front – has received little attention. This paper ventures into relatively uncharted territory by analysing how political dynamics and accompanying economic policy frameworks have impacted the structure and momentum of employment growth in South Africa over the past two decades. This is achieved by examining the changes in employment and, more specifically, the changes in the cost-neutral change in the capital-to-labour (K/L) ratio from 1995 to 2013. For the purpose of the analysis, a dynamic CGE model of the South African economy is used, with the focus being primarily on changes in the capital and labour markets during the period in question across a range of sectors. Among the results are that there was an increase in capital relative to labour (K/L) during the period, despite there being an increase in the rental price of capital relative to wages (PK/PL). The results suggest that at any given ratio of real wages relative to the rental price of capital, industries would choose a K/L ratio 8.1% higher in 2013 than in 1995. The study offers new insights into what is hampering employment in South Africa, which has been eroding the economy’s productive base and prompting serious questions about the country’s growth prospects. Clearly, South Africa needs a well-informed and responsive economic policy framework if it is to escape the potentially explosive unemployment crisis in which it has long been mired.

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Section: Implications For Labour Demandmentioning

confidence: 99%

South Africa's economic policies on unemployment: A historical analysis of two decades of transition

Ferreira

Rossouw

2016

J. econ. financ. sci.

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“…This has resulted in an observed skills and capital intensification in the South African economy. The main growth sectors have been ones that are energy and capital using (Bhorat & Hodge, 1999;Altman, 2001aAltman, , 2001bEdwards, 2001aEdwards, , 2001bBhorat & Cassim, 2004).…”

Section: Insufficient Formal Sector Demandmentioning

confidence: 99%

“…The slow pace of land reform and the protectionist stance of the USA and the European Union further limit the expansion of new agricultural activity (Altman, 2001a(Altman, , 2001b.…”

Section: Insufficient Formal Sector Demandmentioning

confidence: 99%

“…For example, basic chemicals and basic metals accounted for 66.7 per cent of 628 M Altman investment made between 1972 and1990;by 1990, the basic chemicals and metals sectors accounted for over half of South Africa's capital stock. The politically driven synthetic fuels projects, Mossgas and Sasol, alone accounted for more than half the growth in manufacturing investment over this period (Altman, 2001a(Altman, , 2001b.…”

Section: Insufficient Formal Sector Demandmentioning

confidence: 99%

“…The restructuring and export expansion has not resulted in net employment gains. Altman (2001aAltman ( , 2001b argued that South Africa has had difficulty casting off its historical minerals economy orientation. South Africa displays many characteristics that are common to minerals-exporting economies.…”

Section: Insufficient Formal Sector Demandmentioning

confidence: 99%

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Identifying employment-creating sectors in South Africa: the role of services industries

Altman¹

2006

Development Southern Africa

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This paper explores scenarios for employment creation, with an emphasis on services. It considers whether the government's current policies for the formal services sector will achieve its 2014 target of halving unemployment. New employment has mainly been found in the formal and non-formal services, and future employment will probably come from such sectors as business services, trade, finance and tourism. As at 2004, about 480�000 new jobs were needed annually to halve unemployment from 26.2 per cent to 13 per cent by 2014. This would require at least twice the average annual job creation since 1994. Two scenarios are considered: the first under current conditions with similar rates of growth; the second with substantial improvements in policy, especially the promotion of trade in services. The first scenario leaves the economy with the same rate of unemployment in 2014. The second sees a reduction in unemployment of 20 per cent.

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Reflections on 25 Years of Urban Forum

Visser

Rogerson

2014

Urban Forum

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Paths to employment expansion in a minerals economy

Cited by 5 publications

References 24 publications

South Africa's economic policies on unemployment: A historical analysis of two decades of transition

South Africa's economic policies on unemployment: A historical analysis of two decades of transition

Identifying employment-creating sectors in South Africa: the role of services industries

Reflections on 25 Years of Urban Forum

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