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Immigration, labor markets and discrimination: Evidence from the venezuelan exodus in Perú

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Abstract

Venezuela is currently experiencing the biggest crisis in its recent history. This has led more than 5.6 million Venezuelans to emigrate, one million of those to Peru, which amounted to an increase of over 2 percent in the Peruvian population. Venezuelan immigrants in Peru are relatively similar in cultural terms, but, on average, more skilled than Peruvians. In this paper, we first examine Venezuelans'perceptions about being discriminated against in Peru. Using an instrumental variable strategy, we document a causal relationship between the level of employment in the informal sector - where most immigrants are employed - and reports of discrimination. We then study the impact of Venezuelan migration on local's labor market outcomes, reported crime rates and attitudes using a variety of data sources. We find that inflows of Venezuelans to particular locations led to increased employment and income among locals, decreased reported crime, and improved reported community quality. We conduct a heterogeneity analysis to identify the mechanisms behind these labor market effects and discuss the implications for Peruvian immigration policy.

Suggested Citation

  • Andre Groeger & Gianmarco León-Ciliotta & Steven Stillman, 2022. "Immigration, labor markets and discrimination: Evidence from the venezuelan exodus in Perú," Economics Working Papers 1840, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:1840
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    Cited by:

    1. Ahrens, Achim & Casalis, Marine & Hangartner, Dominik & Sánchez, Rodrigo, 2024. "Cash-based interventions improve multidimensional integration outcomes of Venezuelan immigrants," World Development, Elsevier, vol. 181(C).
    2. Diego A. Martin & Jose Ramon Morales Arilla & Alvaro Morales, 2024. "Escaping from hardship, searching for comfort: Climate matching in refugees’ destination choices," Growth Lab Working Papers 237, Harvard's Growth Lab.
    3. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).
    4. Adriana Rocío Cardozo Silva & Christopher Prömel, 2025. "Feeling Equal before the Law? The Impact of Access to Citizenship and Legal Status on Perceived Discrimination," SOEPpapers on Multidisciplinary Panel Data Research 1223, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Morales-Arilla, Jose & Martin, Diego & Morales, Alvaro, 2025. "Escaping from hardship, searching for comfort: Climate matching in refugees’ destination choices," Journal of Development Economics, Elsevier, vol. 176(C).
    6. Mustafa Özer & Jan Fidrmuc, 2024. "Does Immigration Affect the Natives’ Mental Health? Causal Evidence from Forced Syrian Migration to Turkey," CESifo Working Paper Series 11399, CESifo.

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    Keywords

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    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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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