Labor market assimilation of South-South forced migrants :: evidence from a small open Latin American economy

Javier Antonio Torres Gómez; Francisco Bruno Galarza Arellano

Labor market assimilation of South-South forced migrants : evidence from a small open Latin American economy

Research output: Working paper

Abstract

We study the negative wage premium Venezuelan immigrants face in the Peruvian labor market in 2018, by merging two national household surveys. Consistent with an imperfect transfer of skills, we find that Venezuelans face, on average, a 40% discount on their hourly wage compared to Peruvians. Interestingly, there is heterogeneity in wage premiums across education levels and broad groups of fields of study. The higher the education level, the larger the negative wage premium. Venezuelans with low levels of education could earn a higher hourly wage than Peruvian. Further, Immigrants with careers related to Economics, Administration and Commerce face the least wage discount. Finally, we find that foreign work experience has negligible value in the host country

Original language	English
Place of Publication	Lima
Pages	1-40
State	Published - Apr 2021

Publication series

Name	Working paper
No.	179

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities
SDG 16 Peace, Justice and Strong Institutions
SDG 17 Partnerships for the Goals

Keywords

Venezolanos--Brecha salarial--Perú
Venezolanos--Trabajo--Perú
Mercado laboral--Perú

Access to Document

http://perueconomics.org/wp-content/uploads/2021/04/WP-179.pdf

Cite this

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title = "Labor market assimilation of South-South forced migrants :: evidence from a small open Latin American economy",

abstract = "We study the negative wage premium Venezuelan immigrants face in the Peruvian labor market in 2018, by merging two national household surveys. Consistent with an imperfect transfer of skills, we find that Venezuelans face, on average, a 40\% discount on their hourly wage compared to Peruvians. Interestingly, there is heterogeneity in wage premiums across education levels and broad groups of fields of study. The higher the education level, the larger the negative wage premium. Venezuelans with low levels of education could earn a higher hourly wage than Peruvian. Further, Immigrants with careers related to Economics, Administration and Commerce face the least wage discount. Finally, we find that foreign work experience has negligible value in the host country",

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AB - We study the negative wage premium Venezuelan immigrants face in the Peruvian labor market in 2018, by merging two national household surveys. Consistent with an imperfect transfer of skills, we find that Venezuelans face, on average, a 40% discount on their hourly wage compared to Peruvians. Interestingly, there is heterogeneity in wage premiums across education levels and broad groups of fields of study. The higher the education level, the larger the negative wage premium. Venezuelans with low levels of education could earn a higher hourly wage than Peruvian. Further, Immigrants with careers related to Economics, Administration and Commerce face the least wage discount. Finally, we find that foreign work experience has negligible value in the host country

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KW - Venezolanos--Trabajo--Perú

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