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Labor Market Discrimination and Sorting: Evidence From South Africa

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  • Martin Abel

Abstract

This paper collects a unique data set of classified ads and exploits quasi-random variation in the applicant pool composition to show that there exists hiring discrimination against immigrants in South Africa’s informal sector. Consistent with a tournament models in which immigrants are penalised, I find that both immigrant and native job seekers receive more employer clicks on their profile when being pooled with immigrant job applicants. Results also show that immigrants search further away, especially if they live in areas with high employer discrimination. This spatial sorting presents an important cost of discrimination that has largely been ignored in the literature.

Suggested Citation

  • Martin Abel, 2023. "Labor Market Discrimination and Sorting: Evidence From South Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 32(4), pages 331-351.
    • Handle: RePEc:oup:jafrec:v:32:y:2023:i:4:p:331-351.
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    File URL: http://hdl.handle.net/10.1093/jae/ejac013
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    More about this item

    Keywords

    labor market discrimination; informal sector; job search; spatial sorting; South Africa; JEL classification: J46; J61; J71; R2;
    All these keywords.

    JEL classification:

    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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