South-South Migration and the Labor Market: Evidence from South Africa

Abstract

Using census data for 1996, 2001 and 2007, we study the labor market effect of immigration in South Africa. In this period the share of foreign born over the total population has grown by almost fifty percent, and both the characteristics and geographical distribution of immigrants show substantial variation over time. We exploit these features of the data to carry out an analysis that combines both the “spatial correlation” approach pioneered by Card (1990) and the variation across schooling and experience groups used by Borjas (2003). We estimate that increased immigration has a negative effect on natives’ employment outcomes, but not on total income. Furthermore, we find that skilled South Africans appear to be the most negatively affected subgroup of the population.

Keywords: Immigration, Labor market effects, South Africa

JEL Classification: F22, J61