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Working Paper

Resource Rents, Coercion, and Local Development : Evidence from Post-Apartheid South Africa

LIVING STANDARDS GROWTH RATES EMPLOYMENT COMMUNITIES INDUSTRIAL RELATIONS LABOR NEGOTIATIONS RIGHTS EXPORT MARKETS ECONOMIC GROWTH ACCOUNTING PRODUCTION ADVERSE IMPACTS INCOME INTEREST LABOR LEGISLATION PROPERTY RIGHTS EXCHANGE INFORMATION LABOR FORCE SERVICES EXPORTS MARGINAL PRODUCT POLITICAL ECONOMY EFFECTS HEALTH VARIABLES PRICE OWNERSHIP CITIES MARKET ACCESS RENTS DEVELOPING COUNTRY OLIGOPOLY DRIVERS APARTHEID DEVELOPMENT PATH DEVELOPMENT LABOR MARKET PER CAPITA INCOME DEVELOPMENT ECONOMICS MIGRANT LABOR INTERVENTION FERTILITY RATES BARGAINING POWER RENT EXCHANGE RATES DEMOCRACY LABOR UNIONS MOBILITY ECONOMIC EMPOWERMENT IMPERFECT COMPETITION INCREASING RETURNS INHABITANTS MARKETS ORGANIZATIONS CONNECTIVITY SETTLEMENT RIGHT TO STRIKE STANDARDS LABOR UTILITY NATURAL RESOURCES UNEMPLOYMENT EQUITY DATA AVAILABILITY GENERAL EQUILIBRIUM TECHNOLOGICAL CHANGE ECONOMIC PERFORMANCE WAGES GOVERNMENT INTERVENTIONS INTERNATIONAL TRADE BARRIERS FUTURE VALUE PENSIONS WAGE RATES GENDER HOMES ECONOMIC SECTORS OCCUPATIONS UTILITY FUNCTION OCCUPATION MARGINAL COSTS HOUSEHOLD LABOR RELATIONS SHARES AFFILIATED ORGANIZATIONS FOREIGN COMPETITORS MARKET TRADE UNIONS COLLECTIVE BARGAINING ECONOMICS OUTPUT EXPOSURE INSURANCE LABOR ORGANIZATION SOCIAL CAPITAL ECONOMIC DEVELOPMENT TRADE GDP GOODS THEORY LEGAL SYSTEM FEMALES GROWTH RATE INVESTMENT NATURAL RESOURCE RESIDENTIAL AREAS SHARE HOUSEHOLDS BARGAINING SUPPLY AFFILIATED COMMUNITY SERVICES TRADES WAGE DIFFERENTIALS LAW HOUSES COMMUNICATION INTERVENTIONS COMMUNITY POLITICAL PROCESS COMMODITIES DEMOGRAPHIC LABOUR HOSPITALS LABOR MARKETS OUTCOMES COMMODITY PRICES SAFETY COMMODITY SERVICE PRICES DEVELOPMENT POLICY COMPETITION
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World Bank, Washington, DC
Africa | South Africa
2016-03-09T16:35:28Z | 2016-03-09T16:35:28Z | 2016-02

This paper examines how the dismantling of coercive institutions associated with the end of apartheid in South Africa in 1994 affected the distribution of rents from natural resource exports. It identifies the interplay between coercive institutions and natural resource rents as an important driver of local development. Using data from the 1996 census, the paper documents large income gaps between communities located just-inside and just-outside the former self-governing territories set aside for black inhabitants. Examining relative changes between 1996 and 2011, the paper finds that spatial income convergence was considerably stronger among marginalized communities with higher initial exposure to resource rents. These results accord with standard bargaining theory in which the dismantling of coercive institutions improves the negotiating position of unionized workers in the mining industry.

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