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Organization(s) sponsoring the project:
South Africa’s National Treasury and Department of Labour; World Bank – through the Spanish Impact Evaluation Fund; Programme to Support Pro-Poor Development; 3ie
Created By:hhwang1No presence information
Published:7/12/2012 5:01 PM
Primary Contact:
Neil Rankin,, +27117178098
Country:South Africa
Project dates:
Project Stage:Ongoing activities
Geographic Coveraget:Regional
Interventions:Active Labor Market Programs and Activation Policies
Target Population:Lowest Income; Unemployed; Vulnerable; Youth
Testing an Active Labour Market Policy for South Africa
Impact of project:
Impact evaluation in progress
Project Description:
The research tracks a sample of young South Africans over four years as they attempt to enter the labour market. This is done to improve our knowledge of this transition and to identify constraints to finding work. It also surveys firms who do, or might, employ young people in order to identify which factors limit youth employment.
Two randomized control trials (RCT), which test the impact of a wage subsidy in the form of a hiring voucher, are part of the project. The first RCT investigates the impact of providing young people with a wage subsidy. The second RCT investigates the impact of supplying wage subsidies directly to firms.
Why this project is a Good Practice example:
This impact evaluation is one of the first labour market RCTs supported by the South African government to investigate the impact of a potential, and controversial, proposed intervention. It has also created a database which sheds light on the entry of young people into the labour market. Very little knowledge of this process currently exists in South Africa.
Impact Evaluation:
Lessons Learned:
This project, particularly the impact evaluation part, is the first collaboration between the South African National Treasury, the Department of Labour and researchers to rigorously test a potential policy. As such, important lessons have been learnt in terms of process and the actual evaluation. These include: lessons about the political sensitivity of interventions and thus results; capacity building within government with regards to impact evaluation; and lessons learned from the impact evaluation which are being used to guide current discussions on a wage subsidy and other labour market interventions which may help the youth.
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Richard B_Dr says
Very interesting, and nice to have some examples with thorough impact evaluations.
 on  7/18/2012 6:57:45 PM  

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