IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v131y2018icp132-150.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304387817300822
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jdeveco.2017.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dinkelman, Taryn & Schulhofer-Wohl, Sam, 2015. "Migration, congestion externalities, and the evaluation of spatial investments," Journal of Development Economics, Elsevier, vol. 114(C), pages 189-202.
    2. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..
    3. George J. Borjas, 2017. "The Wage Impact of the Marielitos: A Reappraisal," ILR Review, Cornell University, ILR School, vol. 70(5), pages 1077-1110, October.
    4. Mette Foged & Giovanni Peri, 2016. "Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 1-34, April.
    5. Rachel M. Friedberg, 2001. "The Impact of Mass Migration on the Israeli Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1373-1408.
    6. Jeanne Lafortune & Ethan Lewis & José Tessada, 2019. "People and Machines: A Look at the Evolving Relationship between Capital and Skill in Manufacturing, 1860–1930, Using Immigration Shocks," The Review of Economics and Statistics, MIT Press, vol. 101(1), pages 30-43, March.
    7. Joan Monras, 2020. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3017-3089.
    8. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
    9. Ibáñez, Ana Mari­a & Vélez, Carlos Eduardo, 2008. "Civil Conflict and Forced Migration: The Micro Determinants and Welfare Losses of Displacement in Colombia," World Development, Elsevier, vol. 36(4), pages 659-676, April.
    10. Jean-François Maystadt & Gilles Duranton, 2019. "The development push of refugees: evidence from Tanzania," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 299-334.
    11. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    12. Baez, Javier E., 2011. "Civil wars beyond their borders: The human capital and health consequences of hosting refugees," Journal of Development Economics, Elsevier, vol. 96(2), pages 391-408, November.
    13. Valentina Calderón & Margarita Gáfaro & Ana María Ibáñez, 2011. "Forced Migration, Female Labor Force Participation, and Intra-household Bargaining: Does Conflict EmpowerWomen?," Documentos CEDE 008912, Universidad de los Andes - CEDE.
    14. David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages 300-323, November.
    15. Carlos Bozzoli & Tilman Brück & Nina Wald, 2013. "Self-employment and Conflict in Colombia," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 117-142, February.
    16. Christopher L. Smith, 2012. "The Impact of Low-Skilled Immigration on the Youth Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 55-89.
    17. Giovanni Peri & Vasil Yasenov, 2015. "The Labor Market Effects of a Refugee Wave: Applying the Synthetic Control Method to the Mariel Boatlift," NBER Working Papers 21801, National Bureau of Economic Research, Inc.
    18. Andreas Beerli & Giovanni Peri, 2015. "The Labor Market Effects of Opening the Border: Evidence from Switzerland," NBER Working Papers 21319, National Bureau of Economic Research, Inc.
    19. George J. Borjas & Joan Monras, 2017. "The labour market consequences of refugee supply shocks," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 361-413.
    20. George J. Borjas, 2006. "Native Internal Migration and the Labor Market Impact of Immigration," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    21. Jean-François Maystadt & Philip Verwimp, 2014. "Winners and Losers among a Refugee-Hosting Population," Economic Development and Cultural Change, University of Chicago Press, vol. 62(4), pages 769-809.
    22. Ana María Ibañez & Andrés Moya, 2010. "Do Conflicts Create Poverty Traps? Asset Losses and Recovery for Displaced Households in Colombia," NBER Chapters, in: The Economics of Crime: Lessons for and from Latin America, pages 137-172, National Bureau of Economic Research, Inc.
    23. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    24. Gilles Duranton, 2016. "Agglomeration Effects In Colombia," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 210-238, March.
    25. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
    26. Isabel Ruiz & Carlos Vargas-Silva, 2016. "The labour market consequences of hosting refugees," Journal of Economic Geography, Oxford University Press, vol. 16(3), pages 667-694.
    27. Sebastian Kripfganz, 2016. "Quasi–maximum likelihood estimation of linear dynamic short-T panel-data models," Stata Journal, StataCorp LP, vol. 16(4), pages 1013-1038, December.
    28. Kondylis, Florence, 2010. "Conflict displacement and labor market outcomes in post-war Bosnia and Herzegovina," Journal of Development Economics, Elsevier, vol. 93(2), pages 235-248, November.
    29. Isabel Ruiz & Carlos Vargas-Silva, 2013. "The Economics of Forced Migration," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 772-784, June.
    30. Jennifer Alix-Garcia & Anne Bartlett, 2015. "Occupations under fire: the labour market in a complex emergency," Oxford Economic Papers, Oxford University Press, vol. 67(3), pages 687-714.
    31. Adriana Carolina Silva Arias & Jaime Andrés Sarmiento Espinel, 2013. "Desplazados forzados y su participación en el mercado laboral colombiano," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    2. Lara Bohnet & Susana Peralta & Joao Pereira dos Santos, 2021. "Cousins from overseas: the labour market impact of half a million Portuguese repatriates," NOVAFRICA Working Paper Series wp2114, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    2. Ege Aksu & Refik Erzan & Murat Guray Kirdar, 2018. "The Impact of Mass Migration of Syrians on the Turkish Labor Market," Koç University-TUSIAD Economic Research Forum Working Papers 1815, Koc University-TUSIAD Economic Research Forum.
    3. Ege Aksu & Refik Erzan & Murat Guray Kirdar, 2018. "The Impact of Mass Migration of Syrians on the Turkish Labor Market," Koç University-TUSIAD Economic Research Forum Working Papers 1815, Koc University-TUSIAD Economic Research Forum.
    4. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    5. Edo, Anthony & Rapoport, Hillel, 2019. "Minimum wages and the labor market effects of immigration," Labour Economics, Elsevier, vol. 61(C).
    6. Borjas, George J. & Edo, Anthony, 2021. "Gender, Selection into Employment, and the Wage Impact of Immigration," IZA Discussion Papers 14261, Institute of Labor Economics (IZA).
    7. Bahar, Dany & Ibáñez, Ana María & Rozo, Sandra V., 2021. "Give me your tired and your poor: Impact of a large-scale amnesty program for undocumented refugees," Journal of Development Economics, Elsevier, vol. 151(C).
    8. Christian Dustmann & Uta Schönberg & Jan Stuhler, 2016. "The Impact of Immigration: Why Do Studies Reach Such Different Results?," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 31-56, Fall.
    9. Lara Bohnet & Susana Peralta & Joao Pereira dos Santos, 2021. "Cousins from overseas: the labour market impact of half a million Portuguese repatriates," NOVAFRICA Working Paper Series wp2114, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    10. Thomas Kemeny & Abigail Cooke, 2018. "Spillovers from immigrant diversity in cities," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 213-245.
    11. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    12. Ali Fakih & May Ibrahim, 2016. "The impact of Syrian refugees on the labor market in neighboring countries: empirical evidence from Jordan," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(1), pages 64-86, February.
    13. Committee, Nobel Prize, 2021. "Answering causal questions using observational data," Nobel Prize in Economics documents 2021-2, Nobel Prize Committee.
    14. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    15. Naguib, Costanza, 2019. "Estimating the Heterogeneous Impact of the Free Movement of Persons on Relative Wage Mobility," Economics Working Paper Series 1903, University of St. Gallen, School of Economics and Political Science.
    16. Altındağ, Onur & Bakış, Ozan & Rozo, Sandra V., 2020. "Blessing or burden? Impacts of refugees on businesses and the informal economy," Journal of Development Economics, Elsevier, vol. 146(C).
    17. Jean-François Maystadt & Valerie Mueller & Ashwini Sebastian, 2016. "Environmental Migration and Labor Markets in Nepal," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 417-452.
    18. Bodvarsson, Örn B. & Van den Berg, Hendrik F. & Lewer, Joshua J., 2008. "Measuring immigration's effects on labor demand: A reexamination of the Mariel Boatlift," Labour Economics, Elsevier, vol. 15(4), pages 560-574, August.
    19. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 0. "The Effect of Immigration on Labor Market Transitions of Native-Born Unemployed in the United States," Journal of Labor Research, Springer, vol. 0, pages 1-37.
    20. Elena Fiddian-Qasmiyeh & Isabel Ruiz & Carlos Vargas-Silva & Roger Zetter, 2012. "Assessing the Impacts and Costs of Forced Displacement : Volume 1. A Mixed Methods Approach," World Bank Publications - Reports 16096, The World Bank Group.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:131:y:2018:i:c:p:132-150. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/devec .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.