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The Impact of Employment Protection on the Temporary Employment Services Sector in South Africa

Year: 2025

Type: article

Abstract: ABSTRACT This paper uses administrative tax data to examine the impact of strengthening employment protection legislation in the temporary employment services (TES) sector in South Africa. The study uses a regression discontinuity design to investigate whether the 2015 amendments to the LRA had a causal impact on the employment, wages and contract duration of workers employed in the sector. The findings suggest limited impacts in the short‐term. There were no significant effects on worker transitions, and improved working conditions only for the relatively small group that did move out of the TES sector into the non‐TES sector after the reform.

Source: South African Journal of Economics

DOI: 10.1111/saje.12406

Authors: Aalia Cassim, Daniela Casale

Institutions: University of the Witwatersrand, National Treasury, Southern Centre For Inequality Studies

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $2,850