From Exodus to Employment: Labor Market Transitions and the Role of Work Permits in Colombia

The Venezuelan migration crisis has led to large-scale displacement, with over 2.5 million Venezuelans seeking refuge in Colombia. This study assesses the impact of the PEP on labor market outcomes for Venezuelan migrants. Using data from the EPM survey and a difference-in-differences methodology, the study compares preand post-migration labor conditions. Findings indicate that while PEP holders have increased access to formal ways of employment, it does not significantly mitigate occupational downgrading, as many migrants, especially those with white-collar experience, transition to blue-collar jobs. The results suggest that, although the PEP improves employment access, it does not fully address the quality mismatch between migrants' skills and available job opportunities. The findings underscore the importance of policy initiatives targeting skill development and matching migrants' qualifications with job market needs to enhance labor market integration and reduce inequality.