Original Research
Unemployment in South Africa 1970 – 2002: The development of a configuration concern for future employment
Journal of Economic and Financial Sciences | Vol 3, No 1 | a348 |
DOI: https://doi.org/10.4102/jef.v3i1.348
| © 2018 Christie Schoeman, Phillip Blaauw
| This work is licensed under CC Attribution 4.0
Submitted: 01 July 2018 | Published: 30 April 2009
Submitted: 01 July 2018 | Published: 30 April 2009
About the author(s)
Christie Schoeman, Department of Economics and Econometrics, University of Johannesburg, South AfricaPhillip Blaauw, Department of Economics and Econometrics, University of Johannesburg, South Africa
Full Text:
PDF (220KB)Abstract
Unemployment in South Africa has reached crisis proportions and does not seem to be decreasing in concurrence with the more propitious economic reality. Indeed, the unemployment process seems to be isolated from economic reality and has developed a life of its own. This paper investigates what initiates and underlies the development of this phenomenon. The Phillips model on endogenously determined long-run equilibrium unemployment is applied, using hysteresis models and autoregressive modelling, to determine the nature of the high and sustained levels of South African unemployment. We find evidence of unemployment in South Africa being a historical inheritance preserved by uncertainty and sunken costs in the labour market.
Keywords
hysteresis; unemployment; persistence; remanence; heterogeneous agents; extreme shocks
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