Wage Determination in South Africa: What Do We Know?

Altman, M.

doi:10.1353/trn.2006.0002

Cited by 8 publications

(4 citation statements)

References 22 publications

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“…Bhorat & Hinks (2005) note that employment creation since 1994 has been dismal, with young black entrants to the labour force particularly heavily impacted (Makgetla, 2006). The proportion of black workers in low income groups has actually increased since 2000 (Valodia, Lebani, Skinner & Devey, 2006) and Altman (2006) shows that the wage gap between 1995 and 2003 has also increased. In the private sector, between 1996 and 2004 the percentage of blacks in senior management declined, largely in favour of coloureds and Asians, and to a lesser extent whites (Makgetla, 2006;Altman, 2006) although a number of researchers do note that the black middle-class has grown significantly post 1994 (Burger, Burger & Van der Berg, 2003;Van der Berg, 2005;Makgetla, 2006).…”

Section: Literaturementioning

confidence: 99%

The long-term share price reaction to Black Economic Empowerment announcements on the JSE

Ward¹,

Müller²

2010

Investment Analysts Journal

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Black Economic Empowerment has been one of the South African government's primary mechanisms for addressing the economic imbalances of the apartheid era. Voluntary sector "charters", and more recently legislation, have required largely white owned business enterprises to become more inclusive across key areas of economic empowerment, including the provision of minimum levels of ownership for black shareholders. This research employs event study methodology to examine the long-term impact on the share prices of listed companies after announcements are made relating to black empowerment deals which impact equity ownership. The research examines 118 announcements and finds a positive cumulative abnormal return of around 10% after the first year. The positive result is confined to smaller companies, with market capitalisation of less than R3,5bn, whilst large companies experience a marginally negative cumulative abnormal return. The results also show that those companies which made BEE announcements prior to May 2005 ('first-movers') did somewhat worse than those who followed. Finally, the results were found to be consistent for companies making further BEE related announcements, although the cumulative abnormal returns were lower at around 6%.

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Section: Literaturementioning

confidence: 99%

The long-term share price reaction to Black Economic Empowerment announcements on the JSE

Ward¹,

Müller²

2010

Investment Analysts Journal

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“…Between 1994 and 2008 there was weak employment growth, mostly in low-paying semi-formal 'jobs' and informal work (Casale, Muller and Posel, 2004;Bhorat and Oosthuizen, 2006) -at least until 2008-09, when about one million jobs were lost. PALMS has improved the consistency of wage data, showing, inter alia, that the purported 'collapse' in earnings the late 1990s (as reported by Casale, 2004;Banerjee et al, 2006;Leibbrandt, Levinsohn and McCrary, 2010; and, based on these, Altman, 2006;Marais, 2011) was 'almost definitely an artefact of changing survey practice', especially sampling and the enumeration of informal sector activity (Wittenberg, 2014: 60).…”

Section: Data On Earningsmentioning

confidence: 99%

Policy, Politics and Poverty in South Africa

Seekings¹,

Nattrass²

2015

Developmental Pathways to Poverty Reduction

124

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“…From the mid‐1990s to 2003 the wage gap has risen, due to the falling real wages of low‐skilled African workers and increased wages of highly‐skilled (disproportionately white) workers (Altman, 2006). The gap between the wages of African and white workers has also increased at the low and semi‐skilled levels, while at the highly‐skilled and managerial levels the wages of Africans have to some extent caught up with those of whites, due largely to conditions in the public sector (Altman, 2006; citing Woolard, 2002). In the private sector, the share of Africans in senior management actually declined from 1996 to 2004, while the share of Coloured/Asian combined increased substantially, and the share of whites increased slightly (Makgetla, 2006).…”

Section: Evaluating Beementioning

confidence: 99%

‘Black Economic Empowerment’, Business and the State in South Africa

Ponte¹,

Roberts

Sittert

2007

Development and Change

114

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‘Black Economic Empowerment’ (BEE) has been a major policy thrust of the democratic governments in South Africa since 1994 in attempting to redress the effects of apartheid. In this article, we explore the historical precedents to BEE in South Africa, review the different steps taken in promoting it, and assess some of its outcomes to date. We argue that BEE can take only limited forms because of the economic policy constraints in which it has been incorporated. Moreover, these forms have an increasingly managerial logic that further restricts what can be achieved. Short of a major shift in conceptions of — and policy for — BEE, meaningful ‘empowerment’ is unlikely to take place.

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Wage Determination in South Africa: What Do We Know?

Cited by 8 publications

References 22 publications

The long-term share price reaction to Black Economic Empowerment announcements on the JSE

The long-term share price reaction to Black Economic Empowerment announcements on the JSE

Policy, Politics and Poverty in South Africa

‘Black Economic Empowerment’, Business and the State in South Africa

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