The labour share of income has declined around the world over recent decades. South Africa stands out as our labour share has been relatively stable, despite a marked increase in inequality. Our research suggests that economic growth in South Africa tends to be labour augmenting: technology and education have tended to make workers more productive, rather than capital completely replacing workers. But this likely also reflects less adoption of automation than in leading markets, and the role of unions in negotiating wage increases beyond productivity gains.
