Labour Market Responses to Immigration

Evidence from Internal Migration Driven by Weather Shocks

Datos Bibliográficos

ID9720446
AutoresMarieke Kleemans (0009-0007-9310-857X, University of Illinois Urbana-Champaign, autor de correspondencia), Jeremy Magruder (University of California, Berkeley)
Año2018
Volumen128
Número613
Páginas2032-2065
Fecha de publicación2018-08-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12510
OpenAlexW2614161913
IdiomaEN
Citas recibidas37
Referencias citadas14

We study the labour market impact of internal migration in Indonesia by instrumenting migrant flows with rainfall shocks at the origin area. Estimates reveal that a one percentage point increase in the share of migrants decreases income by 0.97% and reduces employment by 0.24 percentage points. These effects are different across sectors: employment reductions are concentrated in the formal sector, while income reduction occurs in the informal sector. Negative consequences are most pronounced for low‐skilled natives, even though migrants are systematically highly skilled. We suggest that the two‐sector nature of the labour market may explain this pattern

Developing country · Economic growth · Economics · Immigration · Internal migration · Political science · Employment and Welfare Studies · Migration and Labor Dynamics · Urban, Neighborhood, and Segregation Studies