Coping with the newest residents: the effect of Venezuelan pushed migration into the labor markets for the Colombia

Conceptual

I guess the effect of Venezuelan exodus toward Colombian labor markets. The economic and public crisis into the Venezuela triggered one of several vital migratory exoduses for the previous decades: more than cuatro mil Venezuelans left their country and you will close to step 1.8 billion arrived in Colombia. We demonstrate that a boost in step one p.p of work also have due the newest migratory move triggered a fall in the every hour wages within the Colombia of 0.4% and you can a poor effectation of 0.step one p.p. to the work rate away from low-skilled specialists. The fresh shed within the wages try greater for men, low-competent and you may casual workers.

Introduction

The latest Venezuelan migratory exodus the most very important attacks out of pushed migration in the world: throughout the 4.5 million out-of Venezuelans leftover the country and you may moved elsewhere Footnote step one (UNHCR 2019). Typically the most popular destination for departing Venezuelan migrants try Colombia. Centered on authoritative statistics, there were nearly step 1.8 mil out-of Venezuelans living in Colombia for the 2019, because of the fresh Venezuelan economic and you will governmental crisis, which stands for an increase in the fresh show out-of Venezuelans residing in Colombia according to this new national people away from 0.07% into the 2015 to 3.6% as much as in the 2019.

So it significant bout of migration represents difficulty so you can policymakers exactly who seek to see and measure the possibility economic and you can societal outcomes of such a massive inflow out-of immigrants, specifically for server nations such Colombia.

Inside papers, I mine new Venezuelan exodus so you can see the migratory episode’s impact on the fresh Colombian labor business. We apply a variations-in-distinctions strategy and you can perform my personal study because of the considering the number of exposure round the Colombian departments to that particular exogenous labor supply treat, pre and post 2016 (we.elizabeth. 2013-2019) LGBT dating service. Within the 2016 a serious and unexpected migratory increase from Venezuelans so you can Colombia happened if boundaries between them countries was reopened just after nearly annually from closing.

My quotes suggest that the intensification of one’s migratory move out of Venezuelans while it began with middle-2016 generated a significant lose during the aggregate earnings as well as in the fresh a position rates out of lower-skilled professionals when you look at the Colombia. An increase in step one fee part (p.p.) of your own labor force considering the inflow out of Venezuelans generated an effective 0.4% reduction of wages and an effective 0.step 1 p.p. reduced total of work to have reasonable-skilled experts; this influence on a career portray a decline out-of 0.18% relative to an average employment speed of low-skilled Colombian specialists inside the 2015, till the Venezuelan exodus. Whenever i estimate these types of outcomes to own Colombian departments on the edging with Venezuela (La Guajira and you may Norte de Santander), results train that the refuses in earnings and you will a position for all specialists have been around ten% and you will 3.cuatro p.p. (good mediocre work), correspondingly, adopting the edging was lso are-unsealed.

To help you estimate the end result from migration during these a few border departments, We build a handling classification playing with around three divisions out-of Colombia you to definitely just weren’t strongly affected by immigration and you will demonstrated, normally, equivalent manner regarding labor markets parameters along with similar socio-market services before the edging re also-opening. To incorporate robustness to those performance, We incorporate a vinyl Manage Means and you will determine a comparable differences-in-variations estimations offered additional combos regarding divisions out-of Colombia while the control communities.

In addition imagine heterogeneous outcomes because of the sex, quantity of qualification, labor formality and you will offered perhaps the individuals were natives or not. I find one to, in the aggregate, the fresh break down in the wages are highest for men than the ladies and much more powerful for low-competent pros. Additionally, brand new reduction in wages try higher to have relaxed professionals but here aren’t important differences between residents and you may low-natives; really the only difference would be the fact I’ve found a mathematically significant boost about informality speed one of low-locals in Colombia.