Exploring dynamics in South African firms: small firms, large firms and labour market rigidity

Firm-level survey data for the period 2005-2011 in South Africa suggest that large firms have higher rates of net job creation than small firms and that there is a relatively high reallocation of employment across South African firms. In this Research Note, Kerr, Wittenberg and Arrow discuss the potentially important policy implications of these rather surprising results relative to existing beliefs about the South African labour market.