Labor Market Discrimination and Sorting: Evidence from South Africa

This paper collects a unique data set of classified ads to test for hiring discrimination against immigrants in South Africa's informal sector

From:
Foreign, Commonwealth & Development Office
Published
1 September 2017
Country:
South Africa
Document Type:
Working Paper
Theme:
Economic Growth
Authors:
Abel, M

Abstract

This paper collects a unique data set of classified ads and exploits quasi-random variation in the applicant pool composition to test for hiring discrimination against immigrants in South Africa’s informal sector. Consistent with a tournament models in which immigrants are penalized, the analysis finds that foreigners and natives benefit from being pooled with foreign job seekers. Next, the paper tests whether discrimination affects search behavior. Controlling for location fixed effects, the analysis finds suggestive evidence for sorting: immigrants search further away and higher discrimination in the residential area is positively correlated with the decision to search in different suburbs.

This work is part of the Closing the Gender Gap in Africa: evaluating new policies and programmes for women’s economic empowerment programme

Citation

Abel, Martin. 2017. Labor Market Discrimination and Sorting : Evidence from South Africa. Policy Research Working Paper;No. 8180. World Bank, Washington, DC.

Labor Market Discrimination and Sorting: Evidence from South Africa

Updates to this page

Published 1 September 2017
Contents