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The Economic Impact of Migrants from Hurricane Maria

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  • Peri, Giovanni

    (University of California, Davis)

  • Rury, Derek

    (University of California, Davis)

  • Wiltshire, Justin C.

    (University of California, Davis)

Abstract

Using a synthetic control estimation strategy we examine the economic impact of a large inflow of people from Puerto Rico into Orlando in the aftermath of Hurricane Maria, which devastated Puerto Rico in September 2017. We find that aggregate employment in Orlando increased as a result of the inflow, as did employment in the construction and retail sectors. We also find positive overall employment effects on non-Hispanic and less-educated workers, as well as positive effects on compensation for those same subgroups in the retail sector. In the construction sector – which absorbed the preponderance of this migrant labor supply shock – we find that earnings for non-Hispanic and less-educated (workers likely to be natives) decreased by a modest amount. These results together suggest that, while migrant inflows may have small negative impacts on the earnings of likely-native workers in sectors directly exposed to the labor supply shock, employment and earnings of likely-native workers in other sectors are positively impacted, possibly by increased local demand.

Suggested Citation

  • Peri, Giovanni & Rury, Derek & Wiltshire, Justin C., 2020. "The Economic Impact of Migrants from Hurricane Maria," IZA Discussion Papers 13049, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp13049
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    1. Caroline M. Kraan & Miyuki Hino & Jennifer Niemann & A. R. Siders & Katharine J. Mach, 2021. "Promoting equity in retreat through voluntary property buyout programs," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 11(3), pages 481-492, September.
    2. Anna Marandi & Kelly Leilani Main, 2021. "Vulnerable City, recipient city, or climate destination? Towards a typology of domestic climate migration impacts in US cities," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 11(3), pages 465-480, September.
    3. Barattieri, Alessandro & Borda, Patrice & Brugnoli, Alberto & Pelli, Martino & Tschopp, Jeanne, 2023. "The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico," Ecological Economics, Elsevier, vol. 205(C).
    4. Michael A. Clemens, 2021. "The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates," RF Berlin - CReAM Discussion Paper Series 2134, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Matija Kovacic & Cristina Elisa Orso, 2023. "Who’s afraid of immigration? The effect of economic preferences on tolerance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1901-1940, July.
    6. Cynthia Boruchowicz & Cesar Martinelli & Susan W. Parker, 2021. "Economic Consequences of Mass Migration: The Venezuelan Exodus in Peru," Working Papers 1080, George Mason University, Interdisciplinary Center for Economic Science.
    7. Lebow, Jeremy, 2024. "Immigration and occupational downgrading in Colombia," Journal of Development Economics, Elsevier, vol. 166(C).

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    More about this item

    Keywords

    local economies; natural disasters; migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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