Minimum wage for South African farm workers: study shows 2013 hike helped reduce poverty even though compliance was poor

By Ihsaan Bassier, Researcher in Economics, London School of Economics and Political Science
Vimal Ranchhod, Professor, University of Cape Town

Minimum wage policies are typically aimed at reducing poverty. Yet there is little direct evidence of this effect, especially in developing countries. And none for South Africa.

In a recent paper, we consider the income, employment and poverty effects of the largest minimum wage increase South Africa has ever seen. In 2013 the agricultural minimum wage increased by about 50%, affecting nearly all…

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