Structural analysis of minimum wage rates, unemployment and food prices of farm workers in south Africa: co-integration approach

• Authors: Joseph Nembo Lekunze , Usapfa Luvhengo , Rangarirai Roy Shoko

Title variants

PL

Analiza strukturalna poziomów wynagrodzenia minimalnego, bezrobocia oraz cen żywności wśród pracowników rolnych w Afryce Południowej – podejście kointegracyjne

• Languages of publication: EN

Abstracts

EN

This paper examines the short- and long- term effects of increasing minimum wage rates for farm workers in South Africa on structural unemployment and rising food prices in the economy. The Pearson correlation model was used to establish association between variables. Analysis found a negative association (–0.651) between wage rate and employment of farm workers, while a positive (0.021) association was found to exist between wage rate (W) increases and food prices (Fp). No association (0.001) was found between employment and food prices (Fp). Co-integration was further employed to determine the short-term and long-term relationships, and the analysis found wages to have a positive and signifi cant (0.453) eff ect on structural unemployment of farm workers. Unemployment was observed to be wage elastic in the long term and wage inelastic in the short term. The long-term relationship showed increasing unemployment in agriculture (L) and rising food prices (Fp) (1.168), while the short-term relationship showed a signifi cant error correction coeffi cient (ECT) with an expected starting point of 41.9% adjustment rate towards long-term equilibrium within a year. Structural analysis confi rmed an inelastic demand for basic food. The study suggest government subsidies to farmers through cost-cutting technologies and farm worker’s skills development on the use of these technologies.

PL

W niniejszym artykule zbadano krótko- oraz długookresowy wpływ wzrostu wynagrodzenia minimalnego pracowników rolnych w Afryce Południowej na bezrobocie strukturalne oraz wzrastające ceny żywności. W celu ustalenia związku między zmiennymi wykorzystano współczynnik korelacji Pearsona. Z analizy wynika, że istnieje ujemna korelacja (–0,651) między poziomem wynagrodzenia a zatrudnieniem wśród pracowników rolnych. Korelacja dodatnia (0,021) zaistniała za to pomiędzy wzrostem poziomu wynagrodzenia (W) a cenami żywności (Fp). Nie stwierdzono związku (0,001) pomiędzy zatrudnieniem a cenami żywności (Fp). Następnie posłużono się analizą kointegracji, by określić krótko- i długookresowe relacje przyczynowe. Okazało się, że płace miały pozytywny i istotny (0,453) wpływ na bezrobocie strukturalne wśród pracowników rolnych. Bezrobocie było elastyczne w stosunku do płac w długim okresie i nieelastyczne w krótkim okresie. Długookresowa kointegracja ukazała wzrost bezrobocia w rolnictwie (L) oraz wzrost cen żywności (Fp) (1,168), natomiast krótkookresowa ujawniła istotny parametr korekty błędem (ECT) z przewidywanym punktem początkowym na poziomie 41,9% dostosowań zmiennych do równowagi długookresowej rocznie. Analiza strukturalna potwierdziła nieelastyczny popyt na podstawową żywność. W artykule zaleca się subsydiowanie pracowników rolnych przez rząd przez zastosowanie technologii zmniejszających koszty, a także rozwój umiejętności pracowników w zakresie technologii zmniejszających koszty.

Keywords

EN

minimum wage; unemployment of farm workers; food prices; structural change

PL

wynagrodzenie minimalne; bezrobocie pracowników rolnych; ceny żywności; zmiana strukturalna

• Publisher: Wydawnictwo Uniwersytetu Przyrodniczego w Poznaniu
• Journal: Journal of Agribusiness and Rural Development
• Year: 2016
• Issue: 4(42)
• Pages: 577–590

Contributors

author

Joseph Nembo Lekunze

• School of Business and Governance, North-West University, South Africa

author

Usapfa Luvhengo

• Taung Agricultural College, South Africa

author

Rangarirai Roy Shoko

• University of Limpopo, South Africa

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Identifiers

DOI

10.17306/JARD.2016.84