How will a job-search subsidy create jobs?

6th February 2013 By: Econ3x3

It is well known that the price of transport is high in South Africa. These high costs are a barrier to individuals searching for work and applying for jobs when the applicant has to present himself or herself for selection or an interview. Thus, the idea of a job-search subsidy, mooted by the ANC, seems sensible. The question is whether this is so. And, if the subsidy is going to create jobs, what mechanisms are necessary for it to be successful?

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Written by Neil Rankin, Associate Professor, Department of Economics, Stellenbosch University

This article was first published on the Econ3x3 website – Accessible policy-relevant research and expert commentaries on unemployment and employment, income distribution and inclusive growth in South Africa.