The Labor Market Effects of Venezuelan Migration in Ecuador
As of 2019, more than 1.2 million Venezuelans passed through Ecuador and more than 400,000 settled (almost 3 percent of Ecuador's population). This paper analyzes the location choices of Venezuelan migrants in Ecuador and the labor market cons...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/149381595860801942/The-Labor-Market-Effects-of-Venezuelan-Migration-in-Ecuador http://hdl.handle.net/10986/34254 |
| Summary: | As of 2019, more than 1.2 million
Venezuelans passed through Ecuador and more than 400,000
settled (almost 3 percent of Ecuador's population).
This paper analyzes the location choices of Venezuelan
migrants in Ecuador and the labor market consequences of
these choices, using data from Ecuador's labor force
survey and mobile phone records on the geographic
distribution of Venezuelan migrants. Around half of the
migrants live in four cantons (of 221). Their location is
primarily driven by local economic conditions, rather than
point of entry. Overall, the regions with the largest
inflows of Venezuelans have not seen any effects on labor
market participation or employment, compared with regions
with fewer inflows. However, our difference-in-difference
estimates clearly indicate that young, low-educated
Ecuadoran workers in high-inflow regions have been adversely
affected. Specifically, the estimates 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-existent inflows of Venezuelans. |
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