Language and labour markets in South Africa

This paper considers the role of language in employment outcomes and labour earnings in South Africa over the period 1996-8. Our pooled cross-section comprises more than 160,000 working-age adults, and the analysis considers the decision to participate in the labour force, employment outcomes and labour earnings. After conditioning on a number of socio-economic and demographic factors, we find that having English as one's mother tongue is one of the pivotal determinants of employment and labour earnings. Allowing for language effects leads to a much diminished role of race/population group as a driver of labour market success and earnings. There seems to be little variation in employment outcomes or earnings across the different African languages.