Immigration, Wages, and Employment under Informal Labor Markets
Authors
Delgado-Prieto, Lukas
Editor
Publication date
2022-08-22
Document language
eng
Publisher
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Journal Title
Journal ISSN
Volume Title
Abstract
This paper studies the labor market impacts of Venezuelan immigrants in Colombia. Exploiting
spatial variation in exposure, I nd a negative e ect on native wages driven by the informal
sector (where immigrants are concentrated) and a reduction in native employment in the formal
sector (where the minimum wage binds for many workers). To explain this asymmetry, I build
a model in which rms substitute formal for informal labor in response to lower informal wages.
Consistent with the model's predictions, I document that the increase in informality is driven
by small rms that use both labor types in production.
Description
Códigos JEL
F22 - International Migration, O15 - Human Resources; Human Development; Income Distribution; Migration, O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements, R23 - Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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Keywords
Immigration, Event study, Labor market, Informality
Keywords
Groups
Informalidad
