This study, the third of three undertaken by the School of Business Leadership at the University of South Africa, involves an analysis of wage differentiation and occupational mobility at the microlevel among blacks in a number of South African companies. The report argues that the political, legal, economic and social factors which impinge on both occupational mobility and equal pay for work of equal value can be understood in terms of discrimination which results from the interplay of class interests and norms relating to status, prestige, and identity. This discrimination is analytically divided into two main areas--before the market discrimination and within the market discrimination. The restrictions, which characterize employment patterns and wages in South Africa today, are assessed against the background of the following features of the society: (1) white domination of the upper categories of employment; (2) legislation which controls employment patterns, particularly for Africans; (3) segregated educational institutions, housing, and neighborhoods, with whites in the most favorable positions; (4) white control of central political institutions and the present ruling party; (5) attempts by the state in recent years to restructure certain aspects of the class or racial system; and (6) existence of a group of higher status blacks who confront the serious problems of the society. (PS)