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

50 Pages Posted: 28 May 2013

See all articles by Giovanni Facchini

Giovanni Facchini

University of Nottingham

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)

Date Written: April 13, 2013

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: immigration, labor market effects, South Africa

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 (April 13, 2013). Centro Studi Luca d'Agliano Development Studies Working Paper No. 351. Available at SSRN: https://ssrn.com/abstract=2271172 or http://dx.doi.org/10.2139/ssrn.2271172

Giovanni Facchini (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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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