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Do immigrants take or create natives' jobs? Evidence of Venezuelan immigration in Peru

Author

Listed:
  • Celia P. Vera

    (Universidad de Piura)

  • Bruno Jiménez

    (Universidad Nacional de La Plata)

Abstract

Peru is the second largest host nation of Venezuelan migrants. This paper combines newly available data on Venezuelans residing in Peru and the Peruvian Household Survey to assess the impact of migration on natives? labor market outcomes. We first rely upon education-experience groups to define labor markets and find that immigration does not affect the wages of competing native workers. We then slice the labor market into occupations based on the observation that in Peru, immigrants and natives with similar education and experience are likely to work in different occupations. Our instrumental variable estimates confirm the null effect on wages. We finally examine whether natives respond with changes in employment and find that 10 Venezuelan workers create informal employment for 38 Peruvians and displace 13 Peruvians from formal jobs, suggesting a change in the Peruvian employment composition toward informality.

Suggested Citation

  • Celia P. Vera & Bruno Jiménez, 2022. "Do immigrants take or create natives' jobs? Evidence of Venezuelan immigration in Peru," Working Papers 2022-18, Lima School of Economics.
    • Handle: RePEc:ima:wpaper:2022-018
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    More about this item

    Keywords

    Immigration; education-experience cells; occupation cells; informality;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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