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A DECOMPOSITION OF GROWTH OF THE REAL WAGE RATE FOR SOUTH AFRICA: 1970–2000
Author(s) -
Mazumdar Dipak,
Seventer Dirk Ernst
Publication year - 2002
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.2002.tb00057.x
Subject(s) - citation , wage , political science , economics , law
This paper examines the potential trade-off between growth in employment and growth in wages. In order to assess the trade-off between employment growth and real wage growth, we make use of a simple decomposition model, following Mazumdar (2000), in which real wage growth is determined by growth in real value added, employment growth, a trend in the wage share of value added and a relative price effect.