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The Labor Market Effects of Venezuelan Migration in Ecuador

Author

Listed:
  • Olivieri, Sergio

    (World Bank)

  • Ortega, Francesc

    (Queens College, CUNY)

  • Rivadeneira, Ana

    (World Bank)

  • Carranza, Eliana

    (World Bank)

Abstract
As of 2019, more than 1.2 million Venezuelans have passed through Ecuador and over 400,000 settled in, which amounts to almost 3% of Ecuador's population. This paper analyzes the location choices of Venezuelan migrants within Ecuador and the labor market consequences of these choices, using data from Ecuador's labor force survey (ENEMDU) and mobile phone records on the geographic distribution of Venezuelan migrants. Around half of these migrants live in 4 cantons (out of 221). Their location is primarily driven by local economic conditions, rather than point of entry. Overall, regions with the largest inflows of Venezuelans have not seen any effects on labor market participation or employment, compared to regions with fewer inflows. However, our difference-in-difference estimates clearly indicate that young, low-educated Ecuadorian workers in high-inflow regions have been adversely affected. Specifically, we estimate that these workers have experienced reductions in employment quality, a 5 percentage-point increase in the rate of informality, and a 13 percentage-point reduction in earnings, relative to workers with similar characteristics living in areas with very low or non-existing inflows of Venezuelans.

Suggested Citation

  • Olivieri, Sergio & Ortega, Francesc & Rivadeneira, Ana & Carranza, Eliana, 2020. "The Labor Market Effects of Venezuelan Migration in Ecuador," IZA Discussion Papers 13501, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13501
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    References listed on IDEAS

    as
    1. Semih Tumen, 2016. "The Economic Impact of Syrian Refugees on Host Countries: Quasi-experimental Evidence from Turkey," American Economic Review, American Economic Association, vol. 106(5), pages 456-460, May.
    2. Evren Ceritoglu & H. Burcu Gurcihan Yunculer & Huzeyfe Torun & Semih Tumen, 2017. "The impact of Syrian refugees on natives’ labor market outcomes in Turkey: evidence from a quasi-experimental design," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-28, December.
    3. Ricardo Hausmann & Julian Hinz & Muhammed A. Yildirim, 2018. "Measuring Venezuelan Emigration with Twitter," Growth Lab Working Papers 113, Harvard's Growth Lab.
    4. Binnur Balkan & Semih Tumen, 2016. "Immigration and prices: quasi-experimental evidence from Syrian refugees in Turkey," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 657-686, July.
    5. Michael Clemens & Cindy Huang & Jimmy Graham, 2018. "The Economic and Fiscal Effects of Granting Refugees Formal Labor Market Access," Working Papers 496, Center for Global Development.
    6. Michel Beine & Luisito Bertinelli & rana Comertpay & Anastasia Litina & Jean-François Maystadt & Benteng Zou, 2019. "Refugee Mobility: Evidence from Phone Data in Turkey," DEM Discussion Paper Series 19-01, Department of Economics at the University of Luxembourg.
    7. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    8. Leonardo Peñaloza Pacheco, 2019. "Living with the Neighbors: The Effect of Venezuelan Forced Migration on Wages in Colombia," CEDLAS, Working Papers 0248, CEDLAS, Universidad Nacional de La Plata.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Michael A Clemens, 2022. "The economic and fiscal effects on the United States from reduced numbers of refugees and asylum seekers," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 449-486.
    2. Ahrens, Achim & Casalis, Marine & Hangartner, Dominik & Sánchez, Rodrigo, 2024. "Cash-based interventions improve multidimensional integration outcomes of Venezuelan immigrants," World Development, Elsevier, vol. 181(C).
    3. Christian Gunadi, 2021. "The Labour Market Effects of Venezuelan Refugee Crisis in the United States," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(6), pages 1311-1340, December.
    4. Zanoni, Wladimir & Fabregas, Raissa, 2024. "The Migrant Penalty in Latin America: Experimental Evidence from Job Recruiters," IDB Publications (Working Papers) 13804, Inter-American Development Bank.
    5. Groeger, Andre & León-Ciliotta, Gianmarco & Stillman, Steven, 2024. "Immigration, labor markets and discrimination: Evidence from the Venezuelan Exodus in Perú," World Development, Elsevier, vol. 174(C).
    6. Wenqun Gao & Yang Chen & Shaorui Xu & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "The Role of Population Aging in High-Quality Economic Development: Mediating Role of Technological Innovation," SAGE Open, , vol. 13(4), pages 21582440231, October.

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    More about this item

    Keywords

    migration Venezuela; labor market;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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