Reducing illegal immigration to South Africa: A dynamic CGE analysis

Heinrich Bohlmann ()

No 201213, Working Papers from University of Pretoria, Department of Economics

Abstract: South African authorities are attempting to limit inflows of illegal immigrants. Evidence for the United States presented in Dixon et al (2011) suggests that a policy-induced reduction in labour supply from illegal immigrants generates a welfare loss for legal residents. I use a similar labour market mechanism within a dynamic CGE model for South Africa, but take into consideration a number of well-known facts about the local economy. With high unemployment rates among low skilled workers and a legal minimum wage in place, I find a net gain in employment and welfare for legal residents in South Africa when reducing the inflow of illegal immigrants.

Keywords: Illegal immigration; dynamic CGE modelling (search for similar items in EconPapers)
JEL-codes: C68 J61 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-04
New Economics Papers: this item is included in nep-afr, nep-cmp, nep-lab and nep-mig
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