Labor market discrimination and sorting: Evidence from South Africa

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Show simple item record Abel, Martin 2017-05-11T11:05:25Z 2017-05-11T11:05:25Z 2017-05
dc.identifier.citation Abel, M. (2017). Labor market discrimination and sorting: Evidence from South Africa. Cape Town: SALDRU, UCT. (SALDRU Working Paper Number 205)
dc.identifier.isbn 978-1-928281-66-5
dc.description.abstract Using a unique data set of classified ads in South Africa, I explore whether employers discriminate against immigrants in the hiring process. I develop a quasi-experimental method to estimate discrimination exploiting variation in the applicant pool composition due to the timing of postings. Consistent with a tournament models in which immigrants are penalized, I find that both foreigners and natives benefit from being pooled with foreign job seekers. Next, I test whether discrimination affects search behavior. Controlling for location fixed effects, I find 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. en_US
dc.description.sponsorship This paper greatly benefited from discussions with and comments from Willa Brown, Rulof Burger, Adi Eyal, Rema Hanna, Lawrence Katz, Asim Khwaja, Sendhil Mullainathan, Devah Pager, Dorit Posel, Vimal Ranchod, Roland Rathelot, Jann Spiess and seminar participants Harvard University, University of Cape Town, Stellenbosch University and the New England Development Conference. Simeon Abel provided excellent research assistance. All errors and omissions remain fully my responsibility. I gratefully acknowledge funding from the World Bank’s Gender Innovation Lab. en_US
dc.language.iso en_US en_US
dc.relation.ispartofseries Saldru Working Paper;205
dc.title Labor market discrimination and sorting: Evidence from South Africa en_US
dc.type Working Paper en_US

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