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Labor market discrimination and sorting: Evidence from South Africa

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  • Martin Abel

    (Harvard University)

Abstract

Using a unique data set of classified ads in South Africa, I explore whether employers discriminate against immigrants in the hiring process. I develop a quasi-experimental method to estimate discrimination exploiting variation in the applicant pool composition due to the timing of postings. Consistent with a tournament models in which immigrants are penalized, I find that both foreigners and natives benefit from being pooled with foreign job seekers. Next, I test whether discrimination affects search behavior. Controlling for location fixed effects, I find suggestive evidence for sorting: immigrants search further away and higher discrimination in the residential area is positively correlated with the decision to search in different suburbs.

Suggested Citation

  • Martin Abel, 2017. "Labor market discrimination and sorting: Evidence from South Africa," SALDRU Working Papers 205, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:205
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    File URL: https://www.opensaldru.uct.ac.za/handle/11090/867
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    References listed on IDEAS

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    Cited by:

    1. Wasserman, Melanie & Gallen, Yana, 2021. "Informed Choices: Gender Gaps in Career Advice," CEPR Discussion Papers 15728, C.E.P.R. Discussion Papers.

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