The impact of agricultural minimum wages on worker flows in South Africa
Marlies Piek,
Dieter von Fintel,
Johann Kirsten
Abstract:This paper is the first to provide estimates of how minimum wages affect worker flows and employment growth rates in an employment scarce developing country context. We investigate the effects of a large, exogenous increase in agricultural minimum wages in South Africa. We find that changes occurred primarily among non‐seasonal workers. Non‐seasonal agricultural employment growth decreased in the initial periods after the minimum wage hike. This was mainly driven by slower rates of entry. The effect on the rat… Show more
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