Reducing illegal immigration to South Africa: A dynamic CGE analysis
AbstractSouth African authorities are attempting to limit inflows of illegal immigrants. Evidence for the United States presented in Dixon et al (2011) suggests that a policy-induced reduction in labour supply from illegal immigrants generates a welfare loss for legal residents. I use a similar labour market mechanism within a dynamic CGE model for South Africa, but take into consideration a number of well-known facts about the local economy. With high unemployment rates among low skilled workers and a legal minimum wage in place, I find a net gain in employment and welfare for legal residents in South Africa when reducing the inflow of illegal immigrants.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 274.
Length: 29 pages
Date of creation: 2012
Date of revision:
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Illegal immigration; dynamic CGE modelling;
Other versions of this item:
- Heinrich R. Bohlmann, 2012. "Reducing illegal immigration to South Africa: A dynamic CGE analysis," Working Papers 201213, University of Pretoria, Department of Economics.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-04-10 (Africa)
- NEP-ALL-2012-04-10 (All new papers)
- NEP-CMP-2012-04-10 (Computational Economics)
- NEP-LAB-2012-04-10 (Labour Economics)
- NEP-MIG-2012-04-10 (Economics of Human Migration)
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