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South African Journal of Economic and Management Sciences

versão On-line ISSN 2222-3436
versão impressa ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.12 no.3 Pretoria Out. 2009




The general equilibrium effects of a productivity increase on the economy and gender in South Africa



Godbertha Kinyondo; Margaret Mabugu

Department of Economics, University of Pretoria




This study utilises a computable general equilibrium model to examine the effects of economy-wide (SIM 1) and partial (SIM 2) productivity increases on the economy, gender employment, wages, income and welfare in South Africa. SIM 1 results in 'output' led employment demand and increased earnings for all skill types of men and women. Skilled men benefit more than others in most sectors. Under SIM 2, productivity has a negative employment impact in the selected sectors, on all skills mostly in labour-intensive sectors. In general, productivity improves households' welfare due to reduced commodity prices and improved earnings. If productivity rises only in men-intensive sectors, men's wages rise while raising productivity in only women-intensive sectors affect women negatively.

Keywords: CGE, FDI, South Africa, Gender, Productivity

JEL D24; F11; F14; F21; J16



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