Economic Consequences of Mass Migration: The Venezuelan Exodus in Peru.

We study the effects of an unexpected and large migration from Venezuela on Peruvian labor markets. From 2017 to 2019, about 800,000 Venezuelans migrated to Peru, with 84% settling in the Lima metropolitan area. The percentage of Venezuelans in the working age population in Lima increased from nearl...

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Published in:Economía Vol. 23; no. 1; pp. 107 - 137
Main Authors: Boruchowicz, Cynthia, Martinelli, César, Parker, Susan W.
Format: Article
Published: London School of Economics & Political Science 2024
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Economic Consequences of Mass Migration: The Venezuelan Exodus in Peru.
      aug:
        au:
          Boruchowicz, Cynthia
          Martinelli, César
          Parker, Susan W.
        affil:
          University of Maryland, US
          George Mason University, US
          University of Maryland and CIDE, US
      su:
        Mass migrations
        Labor supply
        Labor market
        Metropolitan areas
        Economic impact
      sug:
        subj:
          Mass migrations
          Labor supply
          Labor market
          Metropolitan areas
          Economic impact
          Temporary Help Services
      keyword:
        labor market adjustment
        mass migration
        synthetic control
        labor market adjustment
        mass migration
        synthetic control
      ab: We study the effects of an unexpected and large migration from Venezuela on Peruvian labor markets. From 2017 to 2019, about 800,000 Venezuelans migrated to Peru, with 84% settling in the Lima metropolitan area. The percentage of Venezuelans in the working age population in Lima increased from nearly 0 to over 10%, with migrants having higher education on average than the local labor force. We propose a simple assignment model of the labor market, which suggests that migration will lead to a reallocation of local workers toward low-skilled jobs. Using synthetic control methods and comparing Lima with a group of other Peruvian metropolitan areas, we find evidence of adjustment in occupational structure in the direction predicted by the model with few decreases in employment of local workers.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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