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Citation Information

Type Journal Article - Economic Development and Cultural Change
Title Immigration and the labor market outcomes of natives in developing countries: A case study of South Africa
Author(s)
Volume 65
Issue 3
Publication (Day/Month/Year) 2017
Page numbers 389-424
URL https://doi.org/10.1086/690648
Abstract
Using South African census data from 2001, 2007, and 2011, I examine the effect that immigration had on labor market outcomes of native-born black South Africans. Using instrumental variables to control for the potential endogenous location choices of immigrants to South Africa, the results show that immigrant inflows decreased the employment-to-population ratios and total annual income of black native-born South Africans. Additionally, results suggest a negative effect of immigrant inflows on the employment ratio and total annual income of black native-born South Africans employed in the formal sector. Results show that immigration caused an intersectoral employment shift. For black male South Africans, the composition of the employed labor force shifted to the formal sector, and for black female South Africans, the composition of the employed labor force shifted to the informal sector.

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