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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 5851, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:005851
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    References listed on IDEAS

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    Cited by:

    1. Murard, Elie & Sakalli, Seyhun Orcan, 2018. "Mass Refugee Inflow and Long-Run Prosperity: Lessons from the Greek Population Resettlement," IZA Discussion Papers 11613, Institute of Labor Economics (IZA).
    2. Tilman Br�ck & 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 for IDPs: The case of Georgia," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 800-820.
    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.
    5. Maksym Obrizan, 2022. "Poverty, Unemployment and Displacement in Ukraine: three months into the war," Papers 2211.05628, arXiv.org.
    6. Tilman Brück & Patricia Justino & Philip Verwimp & Alexandra Avdeenko & Andrew Tedesco, 2016. "Measuring Violent Conflict in Micro-level Surveys: Current Practices and Methodological Challenges," The World Bank Research Observer, World Bank, vol. 31(1), pages 29-58.
    7. Burçak Müge TUNAER-VURAL, 2020. "Impact of Syrian Forced Migration on Turkish Economy," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(43).

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    More about this item

    Keywords

    Migration; Labor Markets; Developing Countries;
    All these keywords.

    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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