Working Paper: CEPR ID: DP9450
Authors: Giovanni Facchini; Anna Maria Mayda; Mariapia Mendola
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 Codes: F22; J61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| decrease in employment rates of native workers (J68) | outflows to low-immigration districts (J69) |
| increased immigration (K37) | decrease in employment rates of native workers (J68) |
| immigration (F22) | natives' employment rates (J68) |
| immigration (F22) | natives' total income (E25) |