Youth Unemployment Duration and Competing Exit States: What Hides Behind Long Spells of Black Youth Unemployment in South Africa?

Abstract

AbstractThe paper examines the role of personal characteristics in not only determining the unemployment duration but also the probability of unemployment terminating with transitions into wage‐employment, self‐employment or higher education. Formulated within the survival analysis framework using the Labour Market Entry Survey, this study provides the first empirical evidence on black youth unemployment duration in South Africa. The results of the analysis indicate non‐monotonic duration dependence with other individual, household and locational covariates exerting very different impacts on the state‐specific exit rates from unemployment for both young men and women. The scarring impact evident in negative duration dependence and gender‐specific findings point to the need for more informed policy formulation.