RT Generic
T1 Immigration, wages, and employment under informal labor markets
A1 Delgado Prieto, Lukas Andres
A2 Universidad Carlos III de Madrid. Departamento de Economía, 
AB This paper studies the labor market impacts of Venezuelan immigrants in Colombia. Exploiting spatial variation in exposure, I find a negative effect 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 firms 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 firms that use both labor types in production.
SN 2340-5031
YR 2022
FD 2022-09-09
LK https://hdl.handle.net/10016/35664
UL https://hdl.handle.net/10016/35664
LA eng
DS e-Archivo
RD 20 may. 2024