Master’s Study Investigates Minimum Wage Laws in South Africa

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Concerns about the high levels of unemployment in South Africa prompted Ms Leshern Devnarain to put the spotlight on laws regulating the minimum wage in the country for her masters thesis.

Devnarain believes the country’s growth and success depends largely on its labour and social policies. 

Her dissertation titled: “Provincial Variation in the Effects of Minimum Wage Laws in South Africa, 2000-2007”, earned her a Master of Commerce in Economics degree.

The study focused on quantifying the effects of the minimum wage law with regards to the hours worked and the probability of employment in three sectors in the three most urban provinces in South Africa

The focus was on the domestic worker, security and retail/wholesale sectors in KwaZulu-Natal, the Western Cape and Gauteng.  Compliance plays a large role in determining the effectiveness of the laws and was included in the analysis. The results showed that the security sector is still underpaid and overworked, yet the domestic worker sector benefited through higher wages in post-law periods.

The study was supervised by Dr Claire Vermaak from the School of Accounting, Economics and Finance.

‘I would like to thank my lecturers and supervisors who equipped me with the knowledge to achieve my degree,’ said Devnarain. ‘I would also like to say a special thank you to Dr Vermaak who went beyond her duties as a supervisor to guide me throughout the year. Her help has been invaluable.’

Devnarain’s parents were proud to see their daughter graduate after many sleepless nights.

Devnarain has her eyes set on a career on Wall Street. ‘It has always been a dream of mine to experience the world’s business hub, New York.

‘Thereafter I would like to return to SA and attain my PhD and become a lecturer.’

Hazel Langa