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Labour market effects of migration-related supply shocks: evidence from internal refugees in Colombia

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  • Valentina Calderón-Mejía
  • Ana María Ibáñez

Abstract

We exploit the exogenous nature of forced migrations in Colombia to understand how migrations from directly affected areas influence labour markets not directly touched by conflict. Using an instrumental variables strategy, we estimate the causal impact of these migrations on the urban labour market. Our estimates suggest that these migrations substantially reduce wages for urban unskilled workers who compete for jobs with forced migrants. Given the widespread problem of civilian displacement during civil wars in the developing world, and the robust relationship between poverty and civil wars, our results have broad implications for economic development.

Suggested Citation

  • Valentina Calderón-Mejía & Ana María Ibáñez, 2016. "Labour market effects of migration-related supply shocks: evidence from internal refugees in Colombia," Journal of Economic Geography, Oxford University Press, vol. 16(3), pages 695-713.
    • Handle: RePEc:oup:jecgeo:v:16:y:2016:i:3:p:695-713.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbv030
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    Cited by:

    1. Laura Muñoz-Blanco & Federico Fabio Frattini, 2024. "Vaccines on the Move and the War on Polio," Discussion Papers 2403, University of Exeter, Department of Economics.
    2. Aksu, Ege & Erzan, Refik & Kırdar, Murat Güray, 2022. "The impact of mass migration of Syrians on the Turkish labor market," Labour Economics, Elsevier, vol. 76(C).
    3. 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.
    4. Jaime Lara & Marla Cruz Yedra & Diana V. Moyeda López & Adriana Prats Molina & José A. Tellez Muñoz, 2020. "Migración rural urbana e informalidad en las zonas metropolitanas de México. Una estimación de corto plazo," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 35(2), pages 297-329.
    5. Palsson, Craig, 2023. "The forces of path dependence: Haiti's refugee camps, 1937–2009," Explorations in Economic History, Elsevier, vol. 89(C).
    6. Aygün, Aysun & Güray Kırdar, Murat & Tuncay, Berna, 2021. "The effect of hosting 3.4 million refugees on native population mortality," Journal of Health Economics, Elsevier, vol. 80(C).
    7. Muñoz-Blanco, Laura & Frattini, Federico Fabio, 2024. "Vaccines on the Move and the War on Polio," FEEM Working Papers 348733, Fondazione Eni Enrico Mattei (FEEM).
    8. Asif Ehsan, Syed Mortuza & AKTER, SHAHARIA, 2020. "Vulnerability Resilience and Female Labor Force Participation: Evidence from Shocks on Rural Households in Bangladesh," MPRA Paper 118270, University Library of Munich, Germany.
    9. Busso, Matias & Chauvin, Juan Pablo, 2025. "Long-term effects of weather-induced migration on urban labor and housing markets," Journal of Urban Economics, Elsevier, vol. 146(C).
    10. Aysun Aygun & Murat Guray Kirdar & Berna Tuncay, 2020. "The Effect of Hosting 3.4 Million Refugees on the Health System in Turkey and Infant, Child, and Elderly Mortality among Natives," Koç University-TUSIAD Economic Research Forum Working Papers 2014, Koc University-TUSIAD Economic Research Forum.
    11. Busso, Matías & Chauvin, Juan Pablo, 2023. "Long-term Effects of Weather-induced Migration on Urban Labor and Housing Markets," IDB Publications (Working Papers) 12668, Inter-American Development Bank.
    12. Michael Christian Lehmann, 2023. "Macroeconomic volatility and anti‐refugee violence in developing countries: Evidence from commodity price shocks," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 992-1012, May.
    13. 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.
    14. Laura Muñoz-Blanco & Federico Fabio Frattini, 2024. "Vaccines on the Move and the War on Polio," Working Papers 2024.30, Fondazione Eni Enrico Mattei.
    15. Pulido-Velásquez, Manuel & Earnhart, Dietrich, 2024. "The effects of illegal armed groups on municipal expenditures in Colombia," World Development, Elsevier, vol. 182(C).
    16. Aracı, Doğu Tan & Demirci, Murat & Kırdar, Murat Güray, 2022. "Development level of hosting areas and the impact of refugees on natives’ labor market outcomes in Turkey☆," European Economic Review, Elsevier, vol. 145(C).
    17. Adesoji Adelaja & Justin George & Louise Fox & Keith Fuglie & Thomas Jayne, 2021. "Shocks, Resilience and Structural Transformation in Sub-Saharan Africa," Sustainability, MDPI, vol. 13(24), pages 1-22, December.

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