Title: Employment Effects of Foreign Direct Investment: A Theoretical Analysis with Heterogeneous Labour
Abstract: High unemployment rates in South Africa's labour market of approximately one third of the labour force will be the most challenging problem in the next decade. Not only the level of unemployment is intolerable, also the structure is alarming. In the last two decades the gaps in unemployment rates and/or wages of unskilled and skilled labour has increased in almost all developing countries [OECD (1997), Gottschalk/Smeeding (1997), Murphy/Topel (1997)]. Further, as Whiteford/Seventer (2000) point out, in South Africa unemployment is also the major reason for poverty and for high inequality in income distribution. High unemployment rates may also become an obstacle for growth, as social unrest and political instability becomes more likely. Without a significant increase in employment, economic and political stability will be hard to obtain. As the problem of unemployment and low or even decreasing wages is likely to strike more unskilled labour [see e.g. Hofmeyr (2000)] most political concern should be devoted to this group of the labour force [see GEAR (1996)].
Publication Year: 2005
Publication Date: 2005-09-19
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot