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The impact of internal displacement on destination communities: Evidence from the Colombian conflict

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  • Morales, Juan S.

Abstract

More than ten percent of the population of Colombia has been forced to migrate due to civil war. This study employs an enclave IV strategy, which exploits social distance between origin and destination locations, as well as conflict-induced migration, to estimate the impact that the arrival of displaced individuals has on the wages of local residents. I compare the effects on four different subgroups of the population, partitioned by skill (low-skilled versus high-skilled) and by gender. The analysis suggests that a conflict-induced increase in population leads to a short-run negative impact on wages, but that subsequent out-migration from receiving municipalities helps to mitigate these effects. Though the impact tends to dissipate over time, it persists for low-skilled women, suggesting that this group is particularly vulnerable to the arrival of forced migrants.

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  • Morales, Juan S., 2018. "The impact of internal displacement on destination communities: Evidence from the Colombian conflict," Journal of Development Economics, Elsevier, vol. 131(C), pages 132-150.
  • Handle: RePEc:eee:deveco:v:131:y:2018:i:c:p:132-150
    DOI: 10.1016/j.jdeveco.2017.10.003
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    3. Loaiza Quintero, Osmar Leandro & Muñetón Santa, Guberney & Vanegas, Juan Gabriel, 2018. "Forced displacement and Multidimensional Poverty in Antioquia, Colombia: an assessment by means of a Seemingly Unrelated Regression," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 41, pages 167-190.
    4. Martin-Shields, Charles & Camacho, Sonia & Taborda, Rodrigo & Ruhe, Constantin, 2019. "Digitalisation in the lives of urban migrants: Evidence from Bogota," Discussion Papers 12/2019, German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE).
    5. Carlo Lombardo & Julian Martinez-Correa & Leonardo Peñaloza-Pacheco & Leonardo Gasparini, 2020. "The distributional effect of a massive exodus in Latin America and the role of downgrading and regularization," CEDLAS, Working Papers 0290, CEDLAS, Universidad Nacional de La Plata.
    6. Depetris-Chauvin, Emilio & Santos, Rafael J., 2018. "Unexpected guests: The impact of internal displacement inflows on rental prices in Colombian host cities," Journal of Development Economics, Elsevier, vol. 134(C), pages 289-309.
    7. Clotilde Mahé & Sergio Parra-Cely, 2021. "Panic? Probing Angst over Immigration and Crime," DEM Discussion Paper Series 21-04, Department of Economics at the University of Luxembourg.
    8. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    9. Aygün, Aysun Hızıroğlu & Kirdar, Murat G. & Tuncay, Berna, 2020. "The Effect of Hosting 3.4 Million Refugees on the Health System in Turkey and Infant, Child, and Elderly Mortality among Natives," IZA Discussion Papers 13627, Institute of Labor Economics (IZA).
    10. d’Errico, Marco & Mariani, Rama Dasi & Pietrelli, Rebecca & Rosati, Furio Camillo, 2021. "Refugee-host proximity and market creation in Uganda," ESA Working Papers 309466, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    11. Noumedem Temgoua,Claudia & Sharma,Dhiraj & Wai-Poi,Matthew Grant, 2020. "Multidimensional Poverty Assessment of Internally Displaced Persons in Iraq," Policy Research Working Paper Series 9203, The World Bank.
    12. Franz Hamann & Cesar Anzola & Oscar Avila-Montealegre & Juan Carlos Castro-Fernandez & Anderson Grajales-Olarte & Alexander Guarín & Juan C Mendez-Vizcaino & Juan J. Ospina-Tejeiro & Mario A. Ramos-Ve, 2021. "Monetary Policy Response to a Migration Shock: An Analysis for a Small Open Economy," Borradores de Economia 1153, Banco de la Republica de Colombia.
    13. María Luz Moyano-Buitrago, 2021. "Inserción laboral de inmigrantes venezolanas, 2014-2019: ¿acumulación de desventajas?," Revista Sociedad y Economía - CIDSE, Universidad del Valle - CIDSE, issue 44, September.
    14. Leonardo Bonilla-Mejía & Leonardo Fabio Morales & Didier Hermida-Giraldo & Luz A. Flórez, 2020. "El mercado laboral de los inmigrantes y no inmigrantes. Evidencia de la crisis venezolana de refugiados," Borradores de Economia 1119, Banco de la Republica de Colombia.
    15. Carlo Lombardo & Leonardo Peñaloza-Pacheco, 2021. "Exports “brother-boost†: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms," CEDLAS, Working Papers 0283, CEDLAS, Universidad Nacional de La Plata.
    16. Sergio Parra Cely & Clotilde Mahé, 2020. "Does Internal Displacement Affect Educational Achievement in Host Communities?," DEM Discussion Paper Series 20-05, Department of Economics at the University of Luxembourg.
    17. Julian Martinez-Correa & Leonardo Peñaloza Pacheco & Leonardo Gasparini, 2020. "Latin American Brotherhood? Immigration and Preferences for Redistribution," CEDLAS, Working Papers 0268, CEDLAS, Universidad Nacional de La Plata.
    18. Julian Pedrazzi & Leonardo Peñaloza-Pacheco, 2021. "Heterogeneous Effects of Forced Migration on Female Labor Supply," CEDLAS, Working Papers 0274, CEDLAS, Universidad Nacional de La Plata.
    19. M. Christian Lehmann, 2019. "How many refugees should the US admit?," Economics Bulletin, AccessEcon, vol. 39(3), pages 2117-2121.
    20. Dogu Tan Araci & Murat Demirci & Murat Guray Kirdar, 2021. "Development Level of Hosting Areas and the Impact of Refugees on Natives’ Labor Market Outcomes," Koç University-TUSIAD Economic Research Forum Working Papers 2102, Koc University-TUSIAD Economic Research Forum.

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    More about this item

    Keywords

    Civil conflict; Migration; Labour markets;
    All these keywords.

    JEL classification:

    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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