The article examines the impact of a wage subsidy for unskilled workers in South Africa using a detailed economic model. The researchers found that the success of the subsidy depends on how easily different types of workers can be replaced in the job market. If unskilled and skilled workers can easily switch roles, the subsidy will have a positive effect on employment, poverty, and inequality. However, if the labor market is inflexible, the benefits of the subsidy will be limited. To maximize the benefits, policies that increase the economy's ability to produce goods and services, especially in labor-intensive sectors, are needed.