This research is interested in the effects that immigration has on the labour markets in
developing countries. Using the 2001 census and the 2007 community survey from South Africa
this paper examines the effect that immigration has on labour market outcomes of native-born
South Africans. The results show that low-skilled immigrants increase the employment rates of
low-skilled native-born South Africans. The results also show that skilled immigrants have a
crowding out effect on low-skilled black native-born workers while they stimulate the demand
for low-skilled coloured native-born workers.