Wages and wage elasticities for wine and table grapes in South Africa

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dc.contributor.author Conradie, Beatrice
dc.date.accessioned 2013-10-03T16:17:24Z
dc.date.available 2013-10-03T16:17:24Z
dc.date.issued 2004-12
dc.identifier.isbn 1-77011-020-8
dc.identifier.uri http://hdl.handle.net/11090/649
dc.description.abstract A survey of 190 wine and table grape farmers in the Western Cape puts the average wage for farm labour at R928 per month in 2003 and R1123 per month in 2004. Output per worker has doubled since 1983. On farms with grape harvesters, labour is 30 per cent more productive (48 ton/worker) than on farms where wine grapes are picked by hand (37 ton/worker). At 9.75 tons per worker, table grapes are four times as labour-intensive as wine grapes. Resident men dominate the workforce on wine farms, while the resident female workforce is 20 per cent larger than the resident male workforce on table grape farms. Seasonal workers contribute a third of labour in table grapes, and brokers less than ten per cent in either case. In a single-equation short-run Hicksian demand function, wage, output, capital levels and mechanisation intensities are highly significant determinants of employment. Higher wages decrease employment and larger output increases employment. More mechanisation, measured by the number of tractors used to produce a ton of fruit, raises labour intensity too. Grape harvesters could not be shown to reduce jobs. The ten per cent rise in the minimum wage planned for March 2005 could reduce employment by 3.3 per cent in the wine industry and 5.9 per cent in the table grape industry, but it is more likely that the wage increase will be offset against fewer benefits. The average expected impact is about the same as for all agriculture and manufacturing as a whole. en_US
dc.description.sponsorship This survey was generously funded by the National Research Foundation and the paper benefited from detailed comments by Suzanne McCoskey of the US Naval Academy as well as input from Corne van Walbeek and Murray Leibbrandt of UCT and two anonymous reviewers, but as always, any remaining mistakes are entirely my own. en_US
dc.language.iso en en_US
dc.publisher CSSR and SALDRU en_US
dc.relation.ispartofseries CSSR/SALDRU Working Paper;90
dc.subject Wages en_US
dc.subject Wine en_US
dc.subject Table Grapes en_US
dc.subject Workforce en_US
dc.title Wages and wage elasticities for wine and table grapes in South Africa en_US
dc.type Working Paper en_US

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