Reducing illegal immigration to South Africa: A dynamic CGE analysis
South 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.
|Date of creation:||Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+2712) 420 2413
Fax: (+2712) 362-5207
Web page: http://www.up.ac.za/economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008.
"The Labour Market Impact of Immigration,"
CReAM Discussion Paper Series
0811, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Mortensen, Dale T. & Nagypál, Éva, 2005.
"More on Unemployment and Vacancy Fluctuations,"
IZA Discussion Papers
1765, Institute for the Study of Labor (IZA).
- Peter B. Dixon & Maureen T. Rimmer, 2010. "Johansen's contribution to CGE modelling: originator and guiding light for 50 years," Centre of Policy Studies/IMPACT Centre Working Papers g-203, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Haroon Bhorat & Halton Cheadle, 2009. "Labour Reform in South Africa: Measuring Regulation and a Synthesis of Policy Suggestions," Working Papers 09139, University of Cape Town, Development Policy Research Unit.
- George J. Borjas, 2003.
"The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market,"
NBER Working Papers
9755, National Bureau of Economic Research, Inc.
- George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
- W. Jill Harrison & K.R. Pearson, 1994.
"Computing Solutions for Large General Equilibrium Models Using GEMPACK,"
Centre of Policy Studies/IMPACT Centre Working Papers
ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Society for Computational Economics, vol. 9(2), pages 83-127, May.
- Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zo� McLaren & Ingrid Woolard, 2008.
"Why has unemployment risen in the New South Africa?,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 16(4), pages 715-740, October.
- Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zoë McLaren & Ingrid Woolard, 2007. "Why Has Unemployment Risen in the New South Africa," NBER Working Papers 13167, National Bureau of Economic Research, Inc.
- Nickell, Stephen J, 1990. "Unemployment: A Survey," Economic Journal, Royal Economic Society, vol. 100(401), pages 391-439, June.
- John Page & Sonia Plaza, 2006. "Migration Remittances and Development: A Review of Global Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 245-336, December.
- Peter B. Dixon & Martin Johnson & Maureen T. Rimmer, 2011. "Economy‐Wide Effects Of Reducing Illegal Immigrants In U.S. Employment," Contemporary Economic Policy, Western Economic Association International, vol. 29(1), pages 14-30, 01.
- Neumark, David & Wascher, William, 2007.
"Minimum Wages and Employment,"
IZA Discussion Papers
2570, Institute for the Study of Labor (IZA).
- Martin Ruhs, 2008. "Economic research and labour immigration policy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 404-427, Autumn.
- Rulof Burger & Derek Yu, 2007.
"Wage Trends in Post-Apartheid South Africa: Constructing an Earnings Series from Household Survey Data,"
07117, University of Cape Town, Development Policy Research Unit.
- Rulof Burger & Derek Yu, 2006. "Wage trends in post-apartheid South Africa: Constructing an earnings series from household survey data," Working Papers 10/2006, Stellenbosch University, Department of Economics.
- George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
- Robert Pollin & Gerald Epstein & James Heintz & Léonce Ndikumana, 2006. "An Employment-targeted Economic Programme for South Africa," Country Study 1, International Policy Centre for Inclusive Growth.
- Parsons, Christopher R. & Skeldon, Ronald & Walmsley, Terrie L. & Winters, L. Alan, 2007. "Quantifying international migration : a database of bilateral migrant stocks," Policy Research Working Paper Series 4165, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:pre:wpaper:201213. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rangan Gupta)
If references are entirely missing, you can add them using this form.