Appropriate analytical tools for economy-wide analysis of employment creating policies in South Africa

Abstract

This concept paper explores the usefulness of appropriate analytical tools to undertake economy-wide analysis for employment creating policies in South Africa. The compilation is neither complete nor exhaustive. We start with some background to the HSRC concerns about the lack of employment creating policies in South Africa, as this forms the context of our overview. We then pay some attention to the crucial importance of quantitative analysis and economy-wide consistency, followed by an appropriate database and modelling framework to undertake such analysis. We review databases and analytical frameworks that have been used in the past in South Africa. A number of other modelling frameworks of potential interest to the HSRC are also reviewed in Section 6. We then turn to what could be considered as ideal modelling framework for the HSRC. Finally, given limited resources we make recommendation as to a workable set of modelling frameworks and some notes about the need for capacity building.