Globalisation and its effect on the South African labour market: evidence from the manufacturing sector

Abstract

This article investigates the impact of globalisation on employment and wages in the South African manufacturing sector for the period 1993 to 2001. Globalisation has led to a more open economy. Export volumes have increased and manufactured goods have gained ground in relation to mining products. Within the manufacturing basket, labour-intensive goods have become more important. Productivity has increased, but there has been no nett job creation or incrrease in unskilled wages. Regression results indicate that exports have a positive effect on employment, but only for highly skilled workers, not for semi-skilled or unskilled employees.