Refugee Inflow and Labor Market Outcomes in Brazil: Evidence from the Venezuelan Exodus

The impact of a large influx of refugees (or migrants) on the local labor market has long been an important topic among economists. In this study, we investigate the economic impact of the Venezuelan migrant inflow on labor market outcomes in Brazil. We employ the synthetic control method to exploit...

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Published in:Population and development review 2022-03, Vol.48 (1), p.75-96
Main Authors: Ryu, Hanbyul, Paudel, Jayash
Format: Article
Language:English
Subjects:
Brazil
Control methods
Developing countries
Economic impact
Economics
Employment
Impact analysis
Inflow
Labor
Labor force
Labor force participation
Labor market
Labor Market Outcomes
LDCs
Migrants
Refugees
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description The impact of a large influx of refugees (or migrants) on the local labor market has long been an important topic among economists. In this study, we investigate the economic impact of the Venezuelan migrant inflow on labor market outcomes in Brazil. We employ the synthetic control method to exploit the concentration of a large inflow of Venezuelans in the Brazilian state of Roraima, which shares a land border with Venezuela. Results indicate that the inflow of Venezuelan refugees lowered labor force participation and employment rate but did not have a significant impact on hourly wages in Brazil. Our estimates show that labor force participation among less educated individuals decreased by a larger magnitude, while females lost jobs in informal and self-employed sectors. These findings contribute to a better understanding of the short-term economic consequences of hosting refugees in developing countries.
doi_str_mv 10.1111/padr.12452
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source EBSCOhost Business Source Ultimate; Applied Social Sciences Index & Abstracts (ASSIA); International Bibliography of the Social Sciences (IBSS); EBSCOhost Econlit with Full Text; Wiley-Blackwell Read & Publish Collection; Sociological Abstracts
subjects Brazil
Control methods
Developing countries
Economic impact
Economics
Employment
Impact analysis
Inflow
Labor
Labor force
Labor force participation
Labor market
Labor Market Outcomes
LDCs
Migrants
Refugees
title Refugee Inflow and Labor Market Outcomes in Brazil: Evidence from the Venezuelan Exodus
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