The productivity–wage relationship in South Africa: an empirical investigation

摘要: This article investigates the relationship between labour productivity, average real wages and unemployment rate in South Africa at macroeconomic level, using time‐series econometric techniques. There is strong evidence of a structural break 1990, after which time all three variables rose rapidly. The appears to have negatively affected level employment first instance, subsequently fed through into per worker productivity. A long‐term equilibrium (cointegrating) was found but apparently unconnected system, lends support insider–outsider theory. wage–productivity elasticity 0,58 indicates that productivity has grown more rapidly than wages, consistent with finding labour's share gross output been shrinking over past decade. These trends may be explained plausibly by adoption job‐shedding technology capital intensification.