TY - JOUR AU - Banerjee,Abhijit AU - Galiani,Sebastian AU - Levinsohn,Jim AU - McLaren,Zoƫ AU - Woolard,Ingrid TI - Why Has Unemployment Risen in the New South Africa JF - National Bureau of Economic Research Working Paper Series VL - No. 13167 PY - 2007 Y2 - June 2007 UR - http://www.nber.org/papers/w13167 L1 - http://www.nber.org/papers/w13167.pdf N1 - Author contact info: Abhijit Banerjee MIT Department of Economics E52-252d 50 Memorial Drive Cambridge, MA 02142-1347 Tel: 617/253-8855 Fax: 617/253-1330 E-Mail: banerjee@mit.edu Sebastian Galiani Department of Economics University of Maryland 3105 Tydings Hall College Park, MD 20742 Tel: 301/405-3518 E-Mail: galiani@econ.umd.edu James A. Levinsohn Yale School of Management PO Box 208200 New Haven, CT 06520 Tel: 734/763-2319 Fax: 734/764-2769 E-Mail: James.Levinsohn@yale.edu Zoe McLaren School of Public Health University of Michigan Ann Arbor, MI 48109 E-Mail: zmclaren@umich.edu Ingrid Woolard University of Cape Town Department of Economics PO Box 15494 Emerald Hill 6011 South Africa E-Mail: Ingrid.Woolard@uct.ac.za AB - We document the rise in unemployment in South Africa since the transition in 1994. We describe the likely causes of this increase and analyze whether the increase in unemployment is due to structural changes in the economy (resulting in a new equilibrium unemployment rate) or to negative shocks (that temporarily have increased unemployment). We conclude the former are more important. Our analysis includes a multinomial logit approach to understanding transitions in individual-level changes in labor market status using the first nationally representative panel in South Africa. Our analysis highlights several key constraints to addressing unemployment in South Africa. ER -