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Wage Inequality of Venezuelan Migrants in Ecuador

Hector Botello

The Indian Journal of Labour Economics, 2021, vol. 64, issue 1, No 6, 115-132

Abstract: Abstract Venezuelan immigration to the equator has been a pressure on the country’s labor market. The government estimates that some 300,000 immigrants have settled permanently in the country. This paper analyzes the differences between the distribution of salaries of Venezuelan immigrants in Ecuador and the locals. Using microdata from the 2016–2019 employment survey, a parametric and nonparametric decomposition was made. A gap between 14 and 42% was found for newly arrived immigrants. However, for those who arrived 3 years ago the gap is not significant. The reduction in this gap is due to an improvement in the supply of workers. This confirms the fact that there is employment discrimination against newly arrived immigrants despite the fact that they show equal or even higher endowments than locals.

Keywords: Wage gap; Discrimination; Decomposition; Oaxaca–Blinder; Nõpo; Nonparametric estimation (search for similar items in EconPapers)
JEL-codes: I20 J21 J31 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s41027-020-00300-y

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Handle: RePEc:spr:ijlaec:v:64:y:2021:i:1:d:10.1007_s41027-020-00300-y