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Labour immigration, per capita income growth, and unemployment in post-apartheid South Africa

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  • Nyagweta, David Tinashe
Abstract
Since the inception of the post-apartheid era, South Africa has experienced considerable increase in immigration. This increase has mostly been enticed by the socio-economic outlook of the rainbow nation relative to developing nations. Unfortunately, increased immigration, particularly labour-based immigration, has spurred fierce debates on outcomes that, in many instances, manifested into xenophobic violence. Thus, this study sought to evaluate whether labour-based immigration contributes to changes in per capita income growth and unemployment using both macro and micro level data. Results from the autoregressive distributed lag, ordinary least squares, difference, and instrumental variable estimations showed that labour immigration has an insignificant causal effect on both per capita income growth and unemployment. Hence, contrary to pessimistic public and political sentiment, per capita income and unemployment are caused by broader socio-economic factors. Policies should be aimed at ensuring equitable human development with strong ties to inclusivity, job creation, constitutional obligations, and international solidarity.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:105421
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    immigration; post-apartheid; income growth; instrumental variable; autoregressive distributed lag; unemployment;
    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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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