Apartheid’s labor restrictions caused skills shortages and market constriction damaging industry

Evidence

Apartheid’s “racist labour policies,” argued Ralph Horwitz, were instruments of “industrial retrogression, decay and atrophy” (Horwitz, 1957:12), since their inevitable consequence would be increasingly crippling skills shortages, coupled with artificially constricted domestic markets for locally produced goods (given the limited purchasing power of those paid artificially low wages). — David Theo Goldberg, John Solomos, A Companion to Racial and Ethnic Studies, 560

Categorization

• XREF: Connects to the general literature on how exclusionary labor markets self-defeat — echoes points about inefficient equilibria in the Milgrom law-merchant material and institutionalist readings of apartheid economics. — connects to: Wage regulation helped create apartheid’s industrial color bar — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1368; Capitalist labor demand contradicts South Africa’s categorical containment strategy. — Charles Tilly, Regimes and Repertoires, 570