IDEAS home Printed from https://ideas.repec.org/a/wly/econjl/v128y2018i613p2032-2065.html
   My bibliography  Save this article

Labour Market Responses To Immigration: Evidence From Internal Migration Driven By Weather Shocks

Author

Listed:
  • Marieke Kleemans
  • Jeremy Magruder

Abstract

We study the labour market impact of internal migration in Indonesia by instrumenting migrant flows with rainfall shocks at the origin area. Estimates reveal that a one percentage point increase in the share of migrants decreases income by 0.97% and reduces employment by 0.24 percentage points. These effects are different across sectors: employment reductions are concentrated in the formal sector, while income reduction occurs in the informal sector. Negative consequences are most pronounced for low‐skilled natives, even though migrants are systematically highly skilled. We suggest that the two‐sector nature of the labour market may explain this pattern.

Suggested Citation

  • Marieke Kleemans & Jeremy Magruder, 2018. "Labour Market Responses To Immigration: Evidence From Internal Migration Driven By Weather Shocks," Economic Journal, Royal Economic Society, vol. 128(613), pages 2032-2065, August.
    • Handle: RePEc:wly:econjl:v:128:y:2018:i:613:p:2032-2065
    DOI: 10.1111/ecoj.12510
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecoj.12510
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ecoj.12510?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
    ---><---

    Citations

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


    Cited by:

    1. Jaiswal, Sreeja & Balietti, Anca & Schäffer, Daniel, 2023. "Environmental Protection and Labor Market Composition," Working Papers 0736, University of Heidelberg, Department of Economics.
    2. Barbora Šedová & Lucia Čizmaziová & Athene Cook, 2021. "A meta-analysis of climate migration literature," CEPA Discussion Papers 29, Center for Economic Policy Analysis.
    3. Frédéric Docquier & Lucas Guichard & Stefano Iandolo & Hillel Rapoport & Riccardo Turati & Gonzague Vannoorenberghe, 2022. "Populism and the Skill-Content of Globalization: Evidence from the Last 60 Years," CESifo Working Paper Series 10068, CESifo.
    4. Dang, Hai-Anh & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does Global Warming Worsen Poverty and Inequality? An Updated Review," IZA Discussion Papers 16570, Institute of Labor Economics (IZA).
    5. Sharp, Matthew, 2021. "The labour market impacts of female internal migration: Evidence from the end of Apartheid," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    6. 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.
    7. Selod, Harris & Shilpi, Forhad, 2021. "Rural-urban migration in developing countries: Lessons from the literature," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    8. Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2018. "Climate change and agriculture: farmer adaptation to extreme heat," IFS Working Papers W18/06, Institute for Fiscal Studies.
    9. Clement Imbert & Marlon Seror & Yifan Zhang & Yanos Zylberberg, 2022. "Migrants and Firms: Evidence from China," American Economic Review, American Economic Association, vol. 112(6), pages 1885-1914, June.
    10. Sichko, Christopher T., 2023. "Drought and Migration during the Great Depression," 2023 Annual Meeting, July 23-25, Washington D.C. 335558, Agricultural and Applied Economics Association.
    11. Narcisse Cha'Ngom & Christoph Deuster & Frédéric Docquier & Joël Machado, 2023. "Selective Migration and Economic Development: A Generalized Approach," LISER Working Paper Series 2023-06, Luxembourg Institute of Socio-Economic Research (LISER).
    12. Richard Akresh & Daniel Halim & Marieke Kleemans, 2023. "Long-Term and Intergenerational Effects of Education: Evidence from School Construction in Indonesia," The Economic Journal, Royal Economic Society, vol. 133(650), pages 582-612.
    13. Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2018. "Climate Change and Agriculture: Farmer Adaptation to Extreme Heat," Discussion Papers dp18-02, Department of Economics, Simon Fraser University.
    14. Zheng, Xiaodong & Fang, Zuyi & Wang, Yajun & Fang, Xiangming, 2022. "When left-behind children become adults and parents: The long-term human capital consequences of parental absence in China," China Economic Review, Elsevier, vol. 74(C).
    15. Gröger, André, 2021. "Easy come, easy go? Economic shocks, labor migration and the family left behind," Journal of International Economics, Elsevier, vol. 128(C).
    16. Cornelius Christian & Lukas Hensel & Christopher Roth, 2019. "Income Shocks and Suicides: Causal Evidence From Indonesia," The Review of Economics and Statistics, MIT Press, vol. 101(5), pages 905-920, December.
    17. Jonathan Colmer, 2021. "Temperature, Labor Reallocation, and Industrial Production: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 101-124, October.
    18. Sichko, Christopher, 2021. "Migrant Selection and Sorting during the Great American Drought," SocArXiv wm2p3, Center for Open Science.
    19. 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.

    More about this item

    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:wly:econjl:v:128:y:2018:i:613:p:2032-2065. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.