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Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia

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  • Valentina Calderón

    ()

  • Ana María Ibáñez

    ()

Abstract

This paper studies the labor market effects of migration-related supply shocks. We exploit forced migration caused by the Colombian conflict as a natural experiment to examine the impact of exogenous labor supply shifts on labor outcomes. While migration flows are exogenously produced by conflict dynamics, location decisions might be positively correlated with demand shocks. An instrumental variables strategy allows us to correct for the possibleattenuation bias generated by internally displaced populations locating in dynamic labor markets. Our results suggest that these immigration flows produce large negative impacts on the wages and employment opportunities of all workers, and are particularly large for low skill workers.

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File URL: http://economia.uniandes.edu.co/publicaciones/dcede2009-14.pdf
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Bibliographic Info

Paper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 005851.

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Length: 31
Date of creation: 31 May 2005
Date of revision:
Handle: RePEc:col:000089:005851

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Keywords: Migration; Labor Markets; Developing Countries;

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  1. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," NBER Working Papers 3069, National Bureau of Economic Research, Inc.
  2. Joseph Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcome of Less-Skilled Natives," Working Papers 636, Princeton University, Department of Economics, Industrial Relations Section..
  3. Adriana Kugler & Mutlu Yuksel, 2008. "Effects of Low-Skilled Immigration on U.S. Natives: Evidence from Hurricane Mitch," CReAM Discussion Paper Series 0809, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Robert J. LaLonde & Robert H. Topel, 1989. "Labor Market Adjustments to Increased Immigration," University of Chicago - George G. Stigler Center for Study of Economy and State 55, Chicago - Center for Study of Economy and State.
  5. Kugler, Adriana & Kugler, Maurice, 2003. "The labor market effects of payroll taxes in a middle-income country: evidence from Colombia," Discussion Paper Series In Economics And Econometrics 0306, Economics Division, School of Social Sciences, University of Southampton.
  6. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November.
  7. Ana María Ibáñez & Andrés Moya, 2006. "The Impact of Intra-State Conflict on Economic Welfare and Consumption Smoothing: Empirical Evidence for the Displaced Population in Colombia," HiCN Working Papers 23, Households in Conflict Network.
  8. Lemos, Sara & Portes, Jonathan, 2008. "New Labour? The Impact of Migration from Central and Eastern European Countries on the UK Labour Market," IZA Discussion Papers 3756, Institute for the Study of Labor (IZA).
  9. John DiNardo & David Card, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May.
  10. Stefanie Engel & Ana María Ibáñez, 2007. "Displacement Due to Violence in Colombia: A Household-Level Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 335-365.
  11. William J. Carrington & Pedro Lima, 1996. "The impact of 1970s repatriates from Africa on the Portuguese labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(2), pages 330-347, January.
  12. Mauricio Cardenas & Raquel Bernal, 2003. "Determinants of Labor Demand in Colombia: 1976-1996," NBER Working Papers 10077, National Bureau of Economic Research, Inc.
  13. Jennifer Hunt, 1992. "The impact of the 1962 repatriates from Algeria on the French labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
  14. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
  15. Bell, Linda A, 1997. "The Impact of Minimum Wages in Mexico and Colombia," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S102-35, July.
  16. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1996. "Searching for the Effect of Immigration on the Labor Market," NBER Working Papers 5454, National Bureau of Economic Research, Inc.
  17. Alejandro Gaviria, 2004. "Ley 789 De 2002: ¿Funcionó O No?," DOCUMENTOS CEDE 003140, UNIVERSIDAD DE LOS ANDES-CEDE.
  18. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
  19. William F. Maloney & Jairo Nunez Mendez, 2003. "Measuring the Impact of Minimum Wages: Evidence from Latin America," NBER Working Papers 9800, National Bureau of Economic Research, Inc.
  20. Ana María Ibáñez & Andrés Moya, 2009. "Do conflicts create poverty traps? Asset losses and recovery for displaced households in Colombia," Research Working Papers 10, MICROCON - A Micro Level Analysis of Violent Conflict.
  21. Raquel Carrasco & Juan Ramón García & Ana Carolina Ortega, . "The Effect of Immigration on the Employment Opportunities of Native-Born Workers: Some Evidence for Spain," Working Papers 2004-17, FEDEA.
  22. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer, vol. 21(3), pages 627-648, July.
  23. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2006. "Immigration and African-American Employment Opportunities: The Response of Wages, Employment, and Incarceration to Labor Supply Shocks," NBER Working Papers 12518, National Bureau of Economic Research, Inc.
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  25. Carlos Arango & Angélica Pachón, 2004. "Minimum Wages in Colombia: Holding the Middle with a Bite," BORRADORES DE ECONOMIA 003224, BANCO DE LA REPÚBLICA.
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Cited by:
  1. Tilman Brück & Patricia Justino & Philip Verwimp & Andrew Tedesco, 2013. "Measuring Conflict Exposure in Micro-Level Surveys," HiCN Working Papers 153, Households in Conflict Network.

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