EMPLOYMENT, WAGES AND SKILLS DEVELOPMENT: FIRM‐SPECIFIC EFFECTS — EVIDENCE FROM A FIRM SURVEY IN SOUTH AFRICA

Abstract

Acknowledgements The paper explores the inter and intra firm dynamics that are instrumental in shaping the determination of skills training within the South African labour market. The essential starting point is to show that the size of the enterprise and nature of the economic sector in which these enterprises operate, sets conditions on the regimes of enterprise training and skills development. While contesting the notion that there is inevitability in the outcome of these processes, the paper compels us to explore the reasons for it taking place in the present South African milieu. And this enables us to analyse the dynamic evolution of contractual obligations that are built on insecure and temporal employment relations. Consequently, the detour via the structural and organisation dynamics that are embedded within firms enables us to recognise the important role which training can command in promoting greater efficiencies within South African firms and halting the deleterious effects of insecurity and low productivity. The analysis leads us to the conclusion that training ultimately makes good business sense and more so if these sentiments are demonstrated and transmitted through active public policy. We would like to acknowledge the SDPU for commissioning this work and the European Union for funding it. We would also thank the SDPU for its intellectual contribution and for arranging access to the National Enterprise Survey data. Dr Stephen Gelb and the Office of the President were very cooperative in this regard. Finally, we would acknowledge the World Bank and TIPS for the World Bank survey data. Development Policy Research Unit Tel: +27 21 650 5705 Fax: +27 21 650 5711 Information about our Working Papers and other published titles are available on our website at: http://www.uct.ac.za/depts/dpru