Why Has Unemployment Risen in the New South Africa

  title={Why Has Unemployment Risen in the New South Africa},
  author={Abhijit Banerjee and Sebasti{\'a}n Galiani and James A. Levinsohn and Zo{\"e} M. McLaren and Ingrid Woolard},
  journal={Political Economy (Topic)},
We document the rise in unemployment in South Africa since the transition in 1994. We describe how changes in labour supply interacted with stagnant labour demand to produce unemployment rates that peaked between 2001 and 2003. Meanwhile, compositional changes in employment at the sectoral level widened the gap between the skill-level of the employed and the unemployed. Using nationally representative panel data, we show that stable unemployment rates mask high individual-level transition rates… 

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