Template-Type: ReDIF-Paper 1.0
Author-Name: Carlo Lombardo
Author-Name-First: Carlo
Author-Name-Last: Lombardo
Author-Name: Julián Martinez-Correa
Author-Name-First: Julián
Author-Name-Last: Martinez-Correa
Author-Name: Leonardo Peñaloza-Pacheco
Author-Name-First: Leonardo
Author-Name-Last: Peñaloza-Pacheco
Author-Name: Leonardo Gasparini
Author-Name-First: Leonardo
Author-Name-Last: Gasparini
Title: The distributional effect of a migratory exodus in a developing country: the role of downgrading and regularization
Abstract: We study the distributional effect of the massive exodus of Venezuelans in Colombia and how public policy can shape its impact. Using RIF-regressions in an instrumental variables approach, we find that the exodus had a larger negative effect on the lower tail of the natives’ wage distribution, increasing inequality in the host economy. We propose downgrading as the driving mechanism: due to formal restrictions, immigrants ended up working in more routine and lower-paying jobs than natives with similar characteristics. Finally, we show that a large-scale amnesty program reduced the magnitude of downgrading, mitigating the unequalizing impact of the exodus.
Length:  57 pages
Creation-Date:  2022-11
File-URL: https://aaep.org.ar/works/works2022/4573.pdf
File-Format: Application/pdf
Number: 4573
Classification-JEL: D30, F22, J61, O15
Handle: RePEc:aep:anales:4573