André Gröger, Gianmarco León-Ciliotta and Steven Stillman

Immigration, Labor Markets and Discrimination: Evidence from the Venezuelan Exodus in Perú

Abstract

Venezuela is currently experiencing the biggest crisis in the history of Latin America. This has led to a large increase in emigration. According to recent estimates, there are a total of 5.2 million Venezuelan immigrants worldwide with over 700,000 now living in Peru, which has led to an over 2 percent increase in the country’s population. Unlike in many other episodes of refugee migration, Venezuelan migrants are not only very similar in cultural terms, but are, on average, also more skilled than Peruvians. We examine hostility and discrimination against Venezuelans in Peru. First, we examine the impact of Venezuelan migration on local’s labor market outcomes, reported crime rates and attitudes. We find that a higher number of Venezuelans cause an improvement in labor market outcomes for locals, a decrease in reported crime, but that Peruvians in locations with more Venezuelans have less trust in their neighbors, less community attachment and think they have a worse economic situation. We then examine Venezuelans’ perceptions about being discriminated against in Peru. Using an instrumental variable strategy, we document a causal relationship between the strength of the informal sector – where most immigrants are employed – and reports of discrimination.

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