The Labour Market Effects of Venezuelan Refugee Crisis in the United States

Christian Gunadi

Oxford Bulletin of Economics and Statistics, 2021, vol. 83, issue 6, 1311-1340

Abstract: This article examines the characteristics, location choice and labour market impacts of the recent inflow of Venezuelan refugees in the United States. A few interesting findings emerge from analysing the data. Unlike previous US immigration experience in the 1980s, the flow of recent Venezuelan refugees into the United States is characterized by an inflow of highly educated individuals with a college education. The finding of the analysis also suggests that the location choice of these refugees within the United States is not mainly driven by labour market conditions in the destination cities. Rather, distance to home country and climatic difference with Venezuela are the main factors in determining the flow of Venezuelan refugees into a particular US city. Consistent with this finding, most Venezuelan refugees choose to settle only in two cities in Florida: Miami and Orlando. Examining the labour market conditions in Miami and Orlando following the flow of Venezuelan refugees, the results of the analysis show a lack of evidence that the labour force participation, unemployment rate and weekly wages of US natives are adversely affected by the inflow.

Date: 2021
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