Our previous study of the effects of South Africa’s Employment Tax Incentive (ETI)
(Ranchhod and Finn, 2014) found that the ETI did not have a statistically significant impact
on youth employment probabilities in the first six months of 2014. In this update we extend
the period of analysis from six months to all twelve months of 2014 and find that this does
not alter our qualitative findings. These are that the ETI has not resulted in a statistically
significant change in the probability of young people finding jobs, despite its cost of R2
billion over the first year of its existence. Furthermore, there is no evidence to suggest that
the introduction of the ETI resulted in an increase in the level of churning for youth in the
labour market.