Browsing by Author "Razak, Aarifah"

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    Wage Differentials in South Africa's Labour Market: An analysis using micro-econometric techniques
    (2013) Razak, Aarifah; Kaninda, Alain; Chetty, Dhevasha; Kilimani, Nicholas
    This report investigates the existence of wage differentials between part-time and full-time employees in South Africa. Considering that the sample used was obtained from a non-randomized observational study, the Oaxaca-Blinder Decomposition, the Nopo (2004) Matched Decomposition, Propensity Score Matching and Inverse Probability Weighting techniques were used to obtain estimates of wage differentials. The Oaxaca-Blinder results indicate an unexplained wage premium of R 49.25 to part-time employment which dominates the portion attributable to differences in observed endowments. The Nopo Matched Decomposition results indicate an hourly wage premium of R 47.22, with Endowment explaining 20.97% of the observed pay gap. Using Propensity Score Matching, an hourly wage premium to part-time workers of R47.22 was obtained before matching and R50.90 after matching is achieved. The IPW technique yields a wage premium to part-time workers of R47.9 when using the Average Treatment Effect (ATE) as the weight and R52.93 when the Average Treatment Effect on the Treated (ATT) is used.