Kingdon, Geeta G.; Knight, John B. - Centre for the Study of African Economies (CSAE), … - 1999
A large amount of recent evidence finds a negative relationship between local unemployment and wages in OECD countries … unemployment regions have higher wages to compensate for search and other costs. This paper discovers a wage curve in South Africa … unemployment can have a large impact on wages in South Africa. However, this wage flexibility does not extend to union wages which …