Is South Africa’s affirmative action policy efficient ?

SummaryThis article presents a dynamic computable general equilibrium model which measures the impacts of the affirmative action policy set up in South Africa. In order to reduce inequalities inherited from the former regime on the labour market, the government is encouraging firms to employ Historically Disadvantaged People (HDP) as skilled workers. This study aims to assess the impact of this employment policy on labour and income redistribution. T