Visagie, JustinTurok, IvanMutize, Takudzwa2024-06-132024-06-132023http://hdl.handle.net/11660/12576Thesis (Ph.D.(Economics & Finance))--University of the Free State, 2023In recent decades, economic growth theories have increasingly emphasized human capital as a primary driver of national growth, surpassing traditional factors like physical and financial capital. Knowledge, in particular, has emerged as the key catalyst for wealth creation, relegating natural resources and physical labour to secondary roles. This shift in focus has significant implications for urban economic growth, with cities hosting a higher proportion of educated residents experiencing faster growth rates due to positive productivity and innovation externalities. The concentration of highly skilled individuals has led to a winner-takes-all geography, creating stark economic disparities between knowledge-rich 'superstar' cities and deindustrialized 'shrinking' cities. This phenomenon, prevalent in the United States and Europe, underscores the importance of skilled migration within borders for enhancing city productivity and fostering economic growth. In South Africa, where urbanization levels are high, current studies predominantly focus on rural to urban migration, interprovincial movements and other internal mobility trajectories for labour. The thesis addresses a research gap by systematically assessing skilled migration between cities, which has not received attention in the local literature. Utilizing the New Economic Geography theory, New Neoclassical Urban Economics theory, the human capital model and the dual labour market model, the study examines migration patterns, evaluates social mobility impacts and reviews city strategies for attracting and retaining skilled labour. The analysis of intercity migration patterns using the Community Survey 2016 reveals the growing importance of migration between South African cities, predominantly driven by skilled individuals. The study reveals the dynamic interplay between the winners and losers in this migration landscape, emphasizing how certain cities emerge as beneficiaries while others face a drain of skilled labour. Understanding these nuanced patterns is an imperative for policymaking and strategizing to fortify city-level competitiveness and urban development. Using the National Income Dynamic Study data, the thesis delves into the outcomes of skilled labour migration, employing descriptive analysis and sophisticated econometric methods to assess changes in income, wages and employment. The results indicate substantial economic benefits associated with urban migration and challenges conventional expectations regarding high-skilled migrants' pronounced economic advantage for the South African context. While migration to metropolitan areas is traditionally seen as conferring additional economic benefits, the data suggests that urban migration, regardless of the destination, provides substantial economic advantages. This unexpected outcome prompts a re-evaluation of factors influencing economic outcomes, such as labour market dynamics, regional disparities and social and institutional influences. Policy and practical implications underscore the necessity of facilitating urban migration in general, given its consistent bestowal of substantial economic advantages. Irrespective of the urban destination or skill levels, fostering the flow of individuals between cities stands as a powerful contributor to incomes. Nevertheless, prioritizing local economic development and job creation, especially in smaller urban areas, holds promise to reduce dependence on migration for skilled labour, fostering a more equitable distribution of economic development across urban spaces to alleviate the strain on public resources caused by the high influx of migrants into destination cities. The thesis concludes with an analysis of South African metropolitan Integrated Development Plans, revealing a need for greater emphasis on strategies tailored to attract and retain high-skilled migrants. Acknowledging historical inequalities in South Africa, the thesis underscores the contentious nature of high-skilled labour policies. Striking a balance between addressing historical injustices and promoting equity in attracting and retaining high-skilled professionals poses a challenge for policymakers. Finally, the thesis emphasizes the role of municipal administrations in managing migration, highlighting their secondary role in regulation and the importance of collaboration with national and provincial entities. It suggests cost-effective measures for supporting high-skilled labour, such as migration information services.enSouth Africaskilled labour migrationNew Economic Geographynew neoclassical urban economicshuman capital modelurban economicsknowledge economyurban development policiesintercity migrationspatial inequalitywar for talentdifference-in-differencesThesisUniversity of the Free State