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South–South migration and the labor market: evidence from South Africa

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  • Costanza Biavaschi
  • Giovanni Facchini
  • Anna Maria Mayda
  • Mariapia Mendola

Abstract

Using census data for 1996, 2001 and 2007, we study the labor market effect of immigration to South Africa. We exploit the variation—both at the district and at the national level—in the share of foreign-born male workers across schooling and experience groups over time. In addition, we use an instrumental variable empirical strategy to estimate the causal effect of immigration on the local labor market. At the district level, we show that increased immigration has a negative and significant effect on natives’ employment rates but not on total income. At the national level, we find that increased immigration has a negative and significant effect on natives’ total income but not on employment rates. Our results are consistent with outflows of natives to other districts as a consequence of migration, as in Borjas (2006).

Suggested Citation

  • Costanza Biavaschi & Giovanni Facchini & Anna Maria Mayda & Mariapia Mendola, 2018. "South–South migration and the labor market: evidence from South Africa," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 823-853.
  • Handle: RePEc:oup:jecgeo:v:18:y:2018:i:4:p:823-853.
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    Citations

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    Cited by:

    1. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    2. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    3. Michael Clemens, 2013. "The Effect of Foreign Labor on Native Employment: A Job-Specific Approach and Application to North Carolina Farms- Working Paper 326," Working Papers 326, Center for Global Development.
    4. Alexandra Doyle & Amos C Peters & Asha Sundaram, 2014. "Skills mismatch and informal sector participation among educated immigrants: Evidence from South Africa," SALDRU Working Papers 137, Southern Africa Labour and Development Research Unit, University of Cape Town.
    5. Ferrant, Gaëlle & Tuccio, Michele, 2015. "South–South Migration and Discrimination Against Women in Social Institutions: A Two-way Relationship," World Development, Elsevier, vol. 72(C), pages 240-254.

    More about this item

    Keywords

    Immigration; labor market effects; South Africa;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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