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

Author

Listed:
  • Facchini, Giovanni

    (University of Nottingham)

  • Mayda, Anna Maria

    (Georgetown University)

  • Mendola, Mariapia

    (University of Milan Bicocca)

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).

Suggested Citation

  • Facchini, Giovanni & Mayda, Anna Maria & Mendola, Mariapia, 2013. "South-South Migration and the Labor Market: Evidence from South Africa," IZA Discussion Papers 7362, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7362
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    Cited by:

    1. Chletsos, Michael & Roupakias, Stelios, 2019. "Immigration and the economic performance of countries," MPRA Paper 94994, University Library of Munich, Germany.
    2. Shingo Takahashi & Ana Maria Takahashi, 2022. "Does economic self-interest determine public attitudes toward immigrants? An econometric case study in Japan," Discussion Papers 2201, Graduate School of Economics, Kobe University.
    3. Alexandra Doyle & Amos C Peters & Asha Sundaram, 2014. "Skills mismatch and informal sector participation among educated immigrants: Evidence from South Africa," SALDRU Working Papers 137, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Nedoncelle, Clément & Marchal, Léa & Aubry, Amandine & Héricourt, Jérôme, 2024. "Does immigration affect native wages? A meta-analysis," KCG Working Papers 31, Kiel Centre for Globalization (KCG).
    5. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    6. Sergei Guriev & Biagio Speciale & Michele Tuccio, 2019. "How do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(1), pages 37-76.
    7. Baccini, Leonardo & Lodefalk, Magnus & Sabolová, Radka, 2024. "Economic Determinants of Attitudes Toward Migration: Firm-level Evidence from Europe," International Organization, Cambridge University Press, vol. 78(1), pages 67-102, January.
    8. Genicot, Garance & Mayda, Anna Maria & Mendola, Mariapia, 2016. "The Impact of Migration on Child Labor: Theory and Evidence from Brazil," IZA Discussion Papers 10444, Institute of Labor Economics (IZA).
    9. Nyagweta, David Tinashe, 2020. "Labour immigration, per capita income growth, and unemployment in post-apartheid South Africa," MPRA Paper 105421, University Library of Munich, Germany.
    10. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    11. Ferrant, Gaëlle & Tuccio, Michele, 2015. "South–South Migration and Discrimination Against Women in Social Institutions: A Two-way Relationship," World Development, Elsevier, vol. 72(C), pages 240-254.
    12. Michael Clemens, 2013. "The Effect of Foreign Labor on Native Employment: A Job-Specific Approach and Application to North Carolina Farms- Working Paper 326," Working Papers 326, Center for Global Development.
    13. Ana Maria Takahashi & Shingo Takahashi, 2024. "Does economic self‐interest determine public attitudes toward immigrants? An econometric case study in Japan," Asian Economic Journal, East Asian Economic Association, vol. 38(1), pages 61-85, March.
    14. A. Ncube & Yonas T. Bahta & A. J. Jordaan, 2020. "Job Market Perceptions of African Migrant Women in South Africa as an Initial and Long-Term Coping and Adaptation Mechanism," Journal of International Migration and Integration, Springer, vol. 21(4), pages 1165-1185, December.

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    More about this item

    Keywords

    South Africa; labor market effects; immigration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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