Centre for the Study of Violence and Reconciliation (CSVR)
Abstract:
The Community Work Programme (CWP) provides two days of work per week (up to 100 days per year) to unemployed and underemployed people. During the year April 2014 to March 2015 there were 202 599 participants in the CWP at 186 CWP sites across South Africa.
Topic:
Violence, Work Culture, Reconciliation, and Community
We study the role of labor market mismatch in the adjustment to a trade liberalization that results in the offshoring of high-tech production. Our model features two-sided heterogeneity in the labor market: high- and low-skilled workers are matched in a frictional labor market with high- and low-tech firms. Mismatch employment occurs when high-skilled workers choose to accept a less desirable job in the low-tech industry. The main result is that--perhaps counter-intuitively--this type of job displacement is actually beneficial for the labor market in the country doing the offshoring. Mismatch allows the economy to reallocate domestic high-skilled labor across both high- and low-tech industries. In doing so, mismatch dampens both the increase in the aggregate unemployment rate and the decline in aggregate wages that come as a consequence of shifting domestic production abroad.
Topic:
Globalization, Industrial Policy, International Trade and Finance, Labor Issues, Work Culture, and Labor Market