Does moving between cities pay off?: economic outcomes for South Africa's intercity migrants

Abstract

Cities attract talent and innovation, driving growth through agglomeration economies. In African cities, the focus has been on rural to urban migration, overlooking intercity labour migration. This study examines the impact of intercity labour migration on household income, employment, and wages in South Africa, a country with significant income disparities and high urbanization rates. Using longitudinal data from the National Income Dynamics Study (NIDS) from 2008 to 2017, we compare economic outcomes for urban adults who relocate to new cities with those who stay put. Employing various econometric techniques to control for selection bias and simultaneity, the results show a positive impact on income and employment for those moving between urban areas. Notably, upward mobility is not dependent on skill level or moving to larger metros. These findings highlight the importance of understanding urban worker flows and the broader urban system beyond the rural-urban dichotomy.