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Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia

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  • Valentina Calderón

    ()

  • Ana María Ibáñez

    ()

Abstract

This paper studies the labor market effects of migration-related supply shocks. We exploit forced migration caused by the Colombian conflict as a natural experiment to examine the impact of exogenous labor supply shifts on labor outcomes. While migration flows are exogenously produced by conflict dynamics, location decisions might be positively correlated with demand shocks. An instrumental variables strategy allows us to correct for the possibleattenuation bias generated by internally displaced populations locating in dynamic labor markets. Our results suggest that these immigration flows produce large negative impacts on the wages and employment opportunities of all workers, and are particularly large for low skill workers.

Suggested Citation

  • Valentina Calderón & Ana María Ibáñez, 2005. "Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia," DOCUMENTOS CEDE 005851, UNIVERSIDAD DE LOS ANDES-CEDE.
  • Handle: RePEc:col:000089:005851
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    References listed on IDEAS

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    Cited by:

    1. Tilman Brück & Patricia Justino & Philip Verwimp & Alexandra Avdeenko & Andrew Tedesco, 2016. "Measuring Violent Conflict in Micro-level Surveys: Current Practices and Methodological Challenges," World Bank Research Observer, World Bank Group, vol. 31(1), pages 29-58.
    2. Tilman Brück & Patricia Justino & Philip Verwimp & Andrew Tedesco & Alexandra Avdeenko, 2013. "Measuring Conflict Exposure in Micro-Level Surveys," HiCN Working Papers 153, Households in Conflict Network.
    3. Torosyan, Karine & Pignatti, Norberto & Obrizan, Maksym, 2018. "Job Market Outcomes of IDPs: The Case of Georgia," IZA Discussion Papers 11301, Institute for the Study of Labor (IZA).
    4. 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.

    More about this item

    Keywords

    Migration; Labor Markets; Developing Countries;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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