Abstract:
In this paper, we provide the first detailed description of the labour market for taxi drivers in South Africa and investigate the extent to which wages in this market are set competitively. To do this we analyse survey data on both drivers and owners of minibus taxis. We find both direct and indirect indications that this market is not competitive, despite the low skill requirements and bargaining power of taxi drivers in an economy characterised by high unemployment, which would appear to be characteristics of a competitive labour market.
