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Title: Does South African Affirmative Action Policy Reduce Poverty? a CGE Analysis
Authors: Maisonnave, Hélène
Decaluwé, Bernard
Chitiga, Margaret
Keywords: Computable general equilibrium model
top down analysis
South Africa
poverty
inequality
labor market
Issue Date: 2009-08
Series/Report no.: Cahiers du CIRPÉE;09-36
Abstract: This paper presents a computable general equilibrium model (CGEM) able to measure the impacts of the affirmative action policy set up in South Africa. In order to decrease inequalities inherited from the former regime, the government encourages firms to employ Historically Disadvantaged Persons (HDP). Through this study, we evaluate the impact of this policy on employment, poverty and inequality. To evaluate impacts on poverty and inequality, we use a CGE Top Down approach. The paper analyses two scenarios; the first one deals with the impact of affirmative action on skilled jobs. The second scenario adds to the previous by including semi skilled workers in the simulation. Both of these scenarios show a deep decrease in unemployment as well as a fall of poverty for each population groups.
URI: https://depot.erudit.org/id/003100dd
Appears in Collections:Cahiers de recherche du CIRPÉE

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