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Living with the neighbors: the effect of Venezuelan forced migration on the labor market in Colombia

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  • Leonardo Peñaloza-Pacheco

    (Universidad Nacional de La Plata)

Abstract

I estimate the effect of the Venezuelan exodus on the Colombian labor market. The economic and social crisis in Venezuela triggered one of the most important migratory exoduses in recent decades: more than 4 million Venezuelans left their country and close to 1.8 million arrived in Colombia. I show that an increase in 1 p.p of labor supply due the migratory flow caused a decline in hourly wages in Colombia of 0.4% and a negative effect of 0.1 p.p. on the employment rate of low-skilled workers. The drop in wages was greater for men, low-skilled and informal workers.

Suggested Citation

  • Leonardo Peñaloza-Pacheco, 2022. "Living with the neighbors: the effect of Venezuelan forced migration on the labor market in Colombia," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-32, December.
    • Handle: RePEc:spr:jlabrs:v:56:y:2022:i:1:d:10.1186_s12651-022-00318-3
    DOI: 10.1186/s12651-022-00318-3
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    1. William Prieto Bustos & Cristian Darío Castillo Robayo & Jacobo Campo Robledo & Juliana Molina Dominguez, 2024. "Impact of Venezuelan Migration on the Informal Workforce of Native Workers in Colombia," Economies, MDPI, vol. 12(2), pages 1-25, February.

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    More about this item

    Keywords

    Migration; Wages; Colombia; Venezuela;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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