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ABSTRACT
This study decomposes the unemployment rate gap between former and non-former homeland areas in South Africa. We apply the Oaxaca–Blinder [1973] decomposition technique to the 2011 population census community profiles at the main place level. Results indicate that former homeland areas suffer from relatively higher rates of unemployment compared to non-former homeland areas. The 24%-point difference is primarily explained by differences in former homeland area main place endowments. Interventions that improve educational attainment in former homeland areas and those that are sensitive to the labour market challenges faced by black South African youth and women are essential to alleviate the spatial gap.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 Main places are an important geography in South Africa as they correspond to towns, small cities, townships and villages were people live and work. While former homeland areas account for less than 15% of South Africa’s land area, these areas have a high number of main places to accommodate their high population density.
2 The percentage of the workforce that is unemployed and is either actively searching for employment or not.
3 Percentage share of the workforce that is unemployed but is willing and able to work and is actively seeking employment.
4 Note that the map includes Western Cape Province which is excluded in the final estimations.
5 Granato et al. (Citation2015) found evidence of significant regional unemployment differentials between eastern and western Germany that are partly explained by differences in migration rates and education levels.