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Echoes of the crises in Spain and US in the Colombian labor market: a differences-in-differences approach

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  • Luis Arango
  • Dolores Mata
  • Nataly Obando

Abstract

This paper presents evidence of the effect of the recent phases of the business cycle in Spain and United States, proxied by their respective unemployment rates, on the labor market of Colombian cities with high migration tradition. These countries are the main destination for Colombian labor migrants. By using information from the household survey between 2006 and 2011 for urban areas in Colombia and a differences-in-differences approach, we find that unemployment rates of those countries negatively affect the probability of receiving remittances and the amount received by Colombian households living in areas with high and moderate migration tradition. In a second stage, we provide evidence that unemployment rates of those countries positively affect labor force participation decisions in Colombian regions with the highest migration tradition. Copyright The Author(s) 2015

Suggested Citation

  • Luis Arango & Dolores Mata & Nataly Obando, 2015. "Echoes of the crises in Spain and US in the Colombian labor market: a differences-in-differences approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(4), pages 441-477, November.
    • Handle: RePEc:spr:series:v:6:y:2015:i:4:p:441-477
    DOI: 10.1007/s13209-015-0130-5
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    Cited by:

    1. Arango, Luis E. & Castellani, Francesca & Obando, Nataly, 2019. "Heterogeneous labour demand in the Colombian manufacturing sector," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages 1-1.
    2. Luis E. Arango & Francesca Castellani & Nataly Obando, 2019. "Heterogeneous labour demand in the Colombian manufacturing sector," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-19, December.
    3. Cuadros-Meñaca, Andres, 2020. "Remittances, health insurance, and pension contributions: Evidence from Colombia," World Development, Elsevier, vol. 127(C).
    4. Leonardo Bonilla-Mejía, 2017. "Choques externos y remesas internacionales en las regiones de Colombia," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 35(84), pages 189-202, December.
    5. repec:iab:iabjlr:v:53:i:1:p:art.1 is not listed on IDEAS
    6. Gonzalo Cómbita Mora & Óscar Pérez Rodríguez, 2020. "International Remittances and Child Welfare: A Case Study on Cali Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 86(3), pages 73-103, November.

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    More about this item

    Keywords

    Migration; Remittances; Labor participation; Spanish and United States unemployment rates; C21; J21; J22;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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