publication | |

Does technological growth destroy jobs and exacerbate wage inequality in middle income countries?

January 11, 2022

  Joel Gondwe, Rulof Burger, Janneke Pieters


Read a summary

This policy brief summarises findings from a research paper on changes in the South African labour market over the period 1997 to 2015. Specifically, we investigate whether the South African labour market experienced the same “hollowing out” or polarisation due to technological change as developed countries, whereby the share of middle-skilled (and highly routinised) jobs decreased, resulting in relative increases in both low- and high-skilled jobs. We find evidence that this did occur, and that there were differences in the movement of workers by race and gender.

Importantly, the document finds that black workers and women were more likely to move to low-skilled occupations, while workers from the other race groups and men were more likely to move into high-skilled jobs. We interpret this as the result of apartheid-era labour market discrimination, a schooling system which fails to transfer adequate skills to black learners, and persistent discriminatory practices and structural inequalities by race and gender.

Read the full publication here


, |

Digital labor: new opportunities and challenges

read more Publications →

New technologies and the future of jobs in Latin America

read more Publications →
, |

Pathways to improving women’s access to work and wellbeing through online work

read more Publications →
, |

Fairwork Chile 2021 Ratings: Labour Standards in the Gig Economy

read more Publications →

Work is changing rapidly. Learning to navigate the changes will benefit us all.

IDRC has launched FOWIGS—a research program that will help understand how these changes are affecting the lives of the most vulnerable and suggest pathways for an inclusive digital future. The challenges are large and the questions are complex. But we need to face them now more than ever. Stay connected. Learn how.


Contact Us