The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Estimates of a supply-side model of the nonprimary sectors, in which particular attention has been paid to modeling key characteristics of the evolution of the apartheid system, are presented. These imply that the wage differential between white and nonwhite workers doing similar jobs fell significantly over the last two decades to around 14 percent in 1990. This relatively small gap implies that medium-term prospects for the advancement of the disadvantaged groups in South Africa depend heavily on their ability to take up skilled employment, with the direct gains from the elimination of apartheid being relatively small.