The Effects of Mass Migration on Natives' Wages: Evidence from Chile

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Aug 2020
Using cross-section data and an instrumental variable approach, this paper examines the mass migration process that occurred in Chile between 2015 and 2017. Evidence indicates that this process reduced wages for less skilled native workers by around 2-3 percent, mostly impacting males. These workers are competing with more educated immigrants, suggesting a downgrading effect. Results are robust to multiple IV tests.