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Wage Inequality of Venezuelan Migrants in Ecuador

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  • Héctor Alberto Botello-Peñaloza

    (Industrial University of Santander)

Abstract

Venezuelan immigration to the equator has been a pressure on the country’s labor market. The government estimates that some 300,000 immigrants have settled permanently in the country. This paper analyzes the differences between the distribution of salaries of Venezuelan immigrants in Ecuador and the locals. Using microdata from the 2016–2019 employment survey, a parametric and nonparametric decomposition was made. A gap between 14 and 42% was found for newly arrived immigrants. However, for those who arrived 3 years ago the gap is not significant. The reduction in this gap is due to an improvement in the supply of workers. This confirms the fact that there is employment discrimination against newly arrived immigrants despite the fact that they show equal or even higher endowments than locals.

Suggested Citation

  • Héctor Alberto Botello-Peñaloza, 2021. "Wage Inequality of Venezuelan Migrants in Ecuador," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(1), pages 115-132, March.
    • Handle: RePEc:spr:ijlaec:v:64:y:2021:i:1:d:10.1007_s41027-020-00300-y
    DOI: 10.1007/s41027-020-00300-y
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    More about this item

    Keywords

    Wage gap; Discrimination; Decomposition; Oaxaca–Blinder; Nõpo; Nonparametric estimation;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • I20 - Health, Education, and Welfare - - Education - - - General

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