Public-private sector wage differentials and household poverty among Black South Africans

Working paper 711
Malikah Jacobs
Publication date: 
September, 2017
This paper examines the extent and implications of the public-private sector wage differential prevalent amongst the Black South African populace. In this paper we quantify the public sector wage premium, examine the impact of the wage premium on the incidence of household poverty, and perform a robustness analysis to determine whether the poverty effect of the wage premium varies by household type. Our results suggest that a public sector wage premium of approximately 30% exists for Black formal-sector employees, that the wage premium dampens the incidence of household poverty among Black South Africans, and that Black females are more handsomely rewarded as state employees than Black males are.
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