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

Listed author(s):
  • Valentina Calderón

    ()

    (University of Chicago)

  • Ana María Ibáñez

    ()

    (Universidad de los Andes)

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 possible attenuation 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.

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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 69.

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Length: 34 pages
Date of creation: Nov 2009
Handle: RePEc:hic:wpaper:69
Contact details of provider: Web page: http://www.hicn.org

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  2. Ana María Ibáñez & Andrés Moya, 2006. "The Impact of Intra-State Conflict on Economic Welfare and Consumption Smoothing: Empirical Evidence for the Displaced Population in Colombia," HiCN Working Papers 23, Households in Conflict Network.
  3. repec:pri:indrel:dsp018910jt58d is not listed on IDEAS
  4. Bell, Linda A, 1997. "The Impact of Minimum Wages in Mexico and Colombia," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 102-135, July.
  5. Kugler, Adriana D. & Kugler, Maurice, 2003. "The Labour Market Effects of Payroll Taxes in a Middle-Income Country: Evidence from Colombia," CEPR Discussion Papers 4046, C.E.P.R. Discussion Papers.
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  8. Alejandro Gaviria, 2004. "Ley 789 De 2002: ¿Funcionó O No?," DOCUMENTOS CEDE 003140, UNIVERSIDAD DE LOS ANDES-CEDE.
  9. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-251, May.
  10. Sara Lemos & Jonathan Portes, 2008. "New Labour? The Impact of Migration from Central and Eastern European Countries on the UK Labour Market," Discussion Papers in Economics 08/29, Department of Economics, University of Leicester.
  11. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," NBER Working Papers 3069, National Bureau of Economic Research, Inc.
  12. Adriana Kugler & Mutlu Yuksel, 2008. "Effects of Low-Skilled Immigration on U.S. Natives: Evidence from Hurricane Mitch," CReAM Discussion Paper Series 0809, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. William Maloney & Jairo Mendez, 2004. "Measuring the Impact of Minimum Wages. Evidence from Latin America," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 109-130 National Bureau of Economic Research, Inc.
  14. repec:fth:prinin:256 is not listed on IDEAS
  15. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
  16. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234 National Bureau of Economic Research, Inc.
  17. Ana María Ibáñez & Andrés Moya, 2009. "Do conflicts create poverty traps? Asset losses and recovery for displaced households in Colombia," Research Working Papers 10, MICROCON - A Micro Level Analysis of Violent Conflict.
  18. William J. Carrington & Pedro J. F. De Lima, 1996. "The Impact of 1970s Repatriates from Africa on the Portuguese Labor Market," ILR Review, Cornell University, ILR School, vol. 49(2), pages 330-347, January.
  19. Mauricio Cardenas & Raquel Bernal, 2003. "Determinants of Labor Demand in Colombia: 1976-1996," NBER Working Papers 10077, National Bureau of Economic Research, Inc.
  20. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
  21. Carrasco, Raquel & Ortega, Ana Carolina & Jimeno, Juan F., 2004. "The effect of immigration on the employment opportunities of native-born workers : some evidence for Spain," UC3M Working papers. Economics we046122, Universidad Carlos III de Madrid. Departamento de Economía.
  22. Engel, Stefanie & Ibanez, Ana Maria, 2007. "Displacement Due to Violence in Colombia: A Household-Level Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 335-365, January.
  23. Rachel M. Friedberg, 2001. "The Impact of Mass Migration on the Israeli Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1373-1408.
  24. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 627-648, July.
  25. Carlos Arango & Angélica Pachón, 2004. "Minimum Wages in Colombia: Holding the Middle with a Bite," BORRADORES DE ECONOMIA 003224, BANCO DE LA REPÚBLICA.
  26. Jennifer Hunt, 1992. "The Impact of the 1962 Repatriates from Algeria on the French Labor Market," ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
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