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

51 Pages Posted: 11 May 2013

See all articles by Giovanni Facchini

Giovanni Facchini

Tinbergen Institute

Anna Maria Mayda

Georgetown University - Department of Economics; IZA Institute of Labor Economics

Mariapia Mendola

University of Milan - Centro Studi Luca d'Agliano (LdA); Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

Abstract

Using census data for 1996, 2001 and 2007 we study the labor market effect of immigration to South Africa. The paper contributes to a small but growing literature on the impact of South-South migration by looking at one of the most attractive destinations for migrant workers in Sub-Saharan Africa. We exploit the variation – both at the district level and at the national one – in the share of foreign-born male workers across schooling and experience groups over time. At the district level, we estimate that increased immigration has a negative and significant effect on natives' employment rates – and that this effect is more negative for skilled and white South African native workers – but not on total income. These results are robust to using an instrumental variable estimation strategy. 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).

Keywords: South Africa, labor market effects, immigration

JEL Classification: F22, J61

Suggested Citation

Facchini, Giovanni and Mayda, Anna Maria and Mendola, Mariapia, South-South Migration and the Labor Market: Evidence from South Africa. IZA Discussion Paper No. 7362. Available at SSRN: https://ssrn.com/abstract=2263598

Giovanni Facchini (Contact Author)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

HOME PAGE: http://paople.few.eur.nl/facchini

Anna Maria Mayda

Georgetown University - Department of Economics ( email )

Washington, DC 20057
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Mariapia Mendola

University of Milan - Centro Studi Luca d'Agliano (LdA) ( email )

Via Conservatorio 7
Milano, 20122
Italy

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

U6 Building
Viale Piero e Alberto Pirelli, 22
Milano, 20126
Italy

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