Junior Migration Webinar

Cousins From Overseas: The Labour Market Impact of Half a Million Portuguese Repatriates

Co-auteurs: Lara Bohnet and Susana Peralta

Abstract

This paper investigates the labour market consequences of an exogenous increase in the labour supply, exploiting the large and unexpected inflow of repatriates to Portugal following the end of the Portuguese Colonial War in 1974-76. We explore the impact on labour force participation, unemployment, and different types of employment of both male and female natives. Using a novel instrumental variable approach which exploits information on the places of birth of the repatriates, we find no increase in unemployment but some displacement effects, with a stronger adverse effect on females. Female and male native workers are found to be driven out of employment as employees. However, men compensate for this loss by moving to self-employment, while native women move to inactivity.