Persistence in employment of youth post-wage subsidy: matched firm-employee level evidence from South Africa
The study tracks first-time workers and sheds light on the influence of individual and firm characteristics and gender on employment.
Abstract
The findings in this working paper reveal improved employability and job prospects for Employment Tax Incentive (ETI) beneficiaries relative to non-beneficiaries that partly works through incentivising retention by firms of subsidised workers for the 2 year duration of the subsidy, and enhanced job mobility. These effects benefit male workers relative to female workers and younger workers relative to older workers.
This work is part of the Structural Transformation and Economic Growth (STEG) programme.
Citation
Fadiran D and others. ‘Persistence in employment of youth post-wage subsidy: matched firm-employee level evidence from South Africa’ PRISM Working Paper, Policy Research on International Services and Manufacturing, University of Cape Town, 2025