In South Africa, the manufacturing sector -- important for growth and employment creation -- has shown declining growth, poor productivity performance, decreased labour demand, and increased imports of intermediate goods (offshoring activities). Offshoring influences jobs and wages differently...

This paper contributes to the understanding of the linkages between exporting, labour demand, and wages in South Africa. We disentangle labour market differences between exporters and non-exporters and find that exporters employ more people and pay higher wages. Given these higher wages we...