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Immigration, labor markets and discrimination: Evidence from the Venezuelan Exodus in Perú

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  • Groeger, Andre
  • León-Ciliotta, Gianmarco
  • Stillman, Steven

Abstract

Venezuela is currently experiencing the biggest crisis in its recent history. This has led more than 7.3 million Venezuelans to emigrate, at least 1.5 million of those to Peru, which amounted to an increase of over 4 percent in the Peruvian population. Venezuelan immigrants in Peru are relatively similar in cultural terms, but, on average, more skilled than Peruvians. In this paper, we first examine Venezuelans’ perceptions of being discriminated against in Peru. Using an instrumental variable strategy, we document a causal relationship between the level of employment in the informal sector – where most immigrants are employed – and reports of discrimination. We then study the impact of Venezuelan migration on local’s labor market outcomes, reported crime rates, and attitudes using a variety of data sources. We find that inflows of Venezuelans to particular locations led to increased employment and income among locals, decreased reported crime, and improved reported community quality. We conduct a heterogeneity analysis to identify the mechanisms behind these labor market effects and discuss the implications for Peruvian immigration policy.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:wdevel:v:174:y:2024:i:c:s0305750x23002553
    DOI: 10.1016/j.worlddev.2023.106437
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    2. repec:dau:papers:123456789/5382 is not listed on IDEAS
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    Cited by:

    1. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).

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    More about this item

    Keywords

    Immigration; Forced migration; Discrimination; Labor markets; Peru; Venezuela;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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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