The effects of the Employment Tax Incentive on South African employment

South Africa’s Employment Tax Incentive (ETI) has been a flagship policy aimed at tackling youth unemployment by lowering the cost of hiring young workers. Over a decade since its introduction, what have we learned about its effectiveness. Drawing on over ten years of research, Dr Amina Ebrahim, Research Fellow at UNU-WIDER, unpacked the evolution and impact of the ETI—from early firm-level evaluations to advanced econometric analyses and recent policy-oriented studies. This presentation provided a comprehensive look at how ETI has shaped youth employment and what reforms could enhance its effectiveness in today’s economic climate.