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Do immigrants take or create natives' jobs? Evidence of Venezuelan immigration in Peru

Celia Vera and Bruno Jimenez

No 2022-18, Working Papers from Lima School of Economics

Abstract: Peru is the second largest host nation of Venezuelan migrants. This paper combines newly available data on Venezuelans residing in Peru and the Peruvian Household Survey to assess the impact of migration on natives? labor market outcomes. We first rely upon education-experience groups to define labor markets and find that immigration does not affect the wages of competing native workers. We then slice the labor market into occupations based on the observation that in Peru, immigrants and natives with similar education and experience are likely to work in different occupations. Our instrumental variable estimates confirm the null effect on wages. We finally examine whether natives respond with changes in employment and find that 10 Venezuelan workers create informal employment for 38 Peruvians and displace 13 Peruvians from formal jobs, suggesting a change in the Peruvian employment composition toward informality.

Keywords: Immigration; education-experience cells; occupation cells; informality (search for similar items in EconPapers)
JEL-codes: J24 J31 J46 (search for similar items in EconPapers)
Date: 2022-03
New Economics Papers: this item is included in nep-dev, nep-int, nep-iue, nep-lam, nep-lma, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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