The Effects of Mass Migration on Natives' Wages: Evidence from Chile
Peer Reviewed
Date issued
August 2020
Subject
Labor Market;
Wage;
Migration and Migrant;
Wage Level
JEL code
J61 - Geographic Labor Mobility • Immigrant Workers;
F22 - International Migration;
J31 - Wage Level and Structure • Wage Differentials
Country
Chile
Category
Discussion Papers
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.
