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

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Author Info
Valentina Calderón () (Harris School of Public Policy, University of Chicago)
Ana María Ibáñez () (Department of Economics, Universidad de los Andes)

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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 possible attenuation 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://www.microconflict.eu/publications/RWP14_VC_AMI.pdf
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File Function: First version, 2009
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Publisher Info
Paper provided by MICROCON - A Micro Level Analysis of Violent Conflict in its series Research Working Papers with number 14.

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Length: 36 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:mcn:rwpapr:14

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Related research
Keywords: Migration; Labor Markets; Developing Countries;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. 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. [Downloadable!]
  2. David Card & John DiNardo, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May. [Downloadable!] (restricted)
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  3. Adriana Kugler, Maurice Kugler, 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. [Downloadable!]
    Other versions:
  4. 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. [Downloadable!]
  5. 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. [Downloadable!] (restricted)
  6. Mauricio Cardenas & Raquel Bernal, 2003. "Determinants of Labor Demand in Colombia: 1976-1996," NBER Working Papers 10077, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. 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. [Downloadable!]
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  8. 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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. repec:fth:prinin:256 is not listed on IDEAS
  12. 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. [Downloadable!] (restricted)
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  13. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
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