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Economic Consequences of Mass Migration: The Venezuelan Exodus in Peru

Author

Listed:
  • Cynthia Boruchowicz

    (University of Maryland)

  • Cesar Martinelli

    (Interdisciplinary Center for Economic Science and Department of Economics, George Mason University)

  • Susan W. Parker

    (University of Maryland, Center for Research and Teaching in Economics (CIDE))

Abstract

We study the effects of mass migration from Venezuela on Peruvian labor markets. In 4239–423:, about :92,222 Venezuelans migrated to Peru; about :6% settled in the Lima metropolitan area, where the percentage of Venezuelans in the working age population went from nil to over 32%. Migrants were more educated in average than the local labor force, and did nor face large cultural barriers. We propose a simple assignment model of the labor market, which suggests that migration will lead to a reallocation of local workers toward lower skill jobs. Using synthetic control methods, and comparing Lima with a group of other Peruvian cities, we find evidence of adjustment in occupational structure in the direction predicted by the model. Overall, market adjustment to a large shock in labor supply was strikingly smooth.

Suggested Citation

  • Cynthia Boruchowicz & Cesar Martinelli & Susan W. Parker, 2021. "Economic Consequences of Mass Migration: The Venezuelan Exodus in Peru," Working Papers 1080, George Mason University, Interdisciplinary Center for Economic Science.
    • Handle: RePEc:gms:wpaper:1080
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    References listed on IDEAS

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    Cited by:

    1. García-Suaza, Andrés & Gallego, Juan Miguel & Mayorga, Juan D. & Mondragón-Mayo, Angie & Sepúlveda, Carlos & Sarango Iturralde, Alexander, 2022. "COVID-19 and assimilation: an analysis of immigration from Venezuelan in Colombia," Working papers 99, Red Investigadores de Economía.
    2. Celia P. Vera & Bruno Jiménez, 2022. "The Short-Term Labor Market Impact of Venezuelan Immigration in Peru," CEDLAS, Working Papers 0304, CEDLAS, Universidad Nacional de La Plata.
    3. Groeger, Andre & León-Ciliotta, Gianmarco & Stillman, Steven, 2024. "Immigration, labor markets and discrimination: Evidence from the Venezuelan Exodus in Perú," World Development, Elsevier, vol. 174(C).
    4. Torres, Javier & Beverinotti, Javier & Canavire-Bacarreza, Gustavo, 2024. "Medium and Long Run Economic Assimilation of Venezuelan migrants to Peru," IDB Publications (Working Papers) 13361, Inter-American Development Bank.
    5. Lebow Jeremy, 2022. "The labor market effects of Venezuelan migration to Colombia: reconciling conflicting results," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-49, January.

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