 Internal migration and labor market adjustments in the presence of non-wage compensationRaphael Corbi, Tiago Ferraz and Renata Narita Journal of Development Economics, 2025, vol. 177, issue C Abstract: In this paper, we argue that adjustments in non-wage compensation are empirically relevant and have important implications for understanding the effects of labor supply shocks. We examine the labor market impacts of internal migration in Brazil through a shift-share approach, which combines weather-induced migration with historical settlement patterns at each destination. Our findings indicate that increasing migration inflows lead to a reduction in formal employment while simultaneously increasing informality by a similar magnitude. Like previous studies, we observe a significant negative impact on earnings in the informal sector. Additionally, we provide evidence that the proportion of formal workers receiving non-wage benefits declines, underscoring that substantial adjustments take place in the formal sector, even in a context of high informality. We interpret our results within a framework that incorporates both formal and informal labor inputs, as well as non-wage benefits, and generates predictions closely aligned with our empirical findings. Keywords: Internal migration; Wages; Employment; Non-wage benefits (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:177:y:2025:i:c:s0304387825000859 DOI: 10.1016/j.jdeveco.2025.103534 Access Statistics for this article Journal of Development Economics is currently edited by M. R. Rosenzweig More articles in Journal of Development Economics from Elsevier |
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