Replication data for: High Unemployment Yet Few Small Firms: The Role of Centralized Bargaining in South Africa

Principal Investigator(s): View help for Principal Investigator(s) Jeremy R. Magruder

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Project Citation:

Magruder, Jeremy R. Replication data for: High Unemployment Yet Few Small Firms: The Role of Centralized Bargaining in South Africa. Nashville, TN: American Economic Association [publisher], 2012. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113823V1

Project Description

Summary: South Africa has very high unemployment, yet few adults work informally in small firms. This paper tests whether centralized bargaining, by which unionized large firms extend arbitration agreements to nonunionized smaller firms, contributes to this problem. While local labor market characteristics influence the location of these agreements, their coverage is spatially discontinuous, allowing identification by spatial regression discontinuity. Centralized bargaining agreements are found to decrease employment in an industry by 8-13 percent, with losses concentrated among small firms. These effects are not explained by resettlement to uncovered areas, and are robust to a wide variety of controls for unobserved heterogeneity. (JEL J52, K31, L25, O14, O15)

Scope of Project

JEL Classification:
      J52 Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
      K31 Labor Law
      L25 Firm Performance: Size, Diversification, and Scope
      O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
      O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration

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V1 [2019-10-12]

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