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Shoring up Economic Refugees: Venezuelan Migrants in the Ecuadorian Labor Market

Author

Listed:
  • Olivieri, Sergio

    (World Bank)

  • Ortega, Francesc

    (Queens College, CUNY)

  • Rivadeneira, Ana

    (World Bank)

  • Carranza, Eliana

    (World Bank)

Abstract
Ecuador has become the third largest receiver of the 4.3 million Venezuelans that left their country in the last five years, hosting around 10% of them. Little is known about the characteristics of these migrants and their labor market outcomes. This paper fills this gap, analyzing a new large survey (known as EPEC). On average, Venezuelan workers are highly skilled and have high rates of employment, compared to Ecuadorians. However, their employment is of much lower quality, characterized by low wages and high rates of informality and temporality. Venezuelans have experienced significant occupational downgrading, relative to their employment prior to emigration. As a result, despite their high educational attainment, Venezuelans primarily compete for jobs with the least skilled and more economically vulnerable Ecuadorian workers. Our simulations suggest that measures that allow Venezuelans to obtain employment that matches their skills, such as facilitating the conversion of educational credentials, would increase Ecuador's GDP between 1.6% and 1.9% and alleviate the pressure on disadvantaged native workers. We also show that providing work permits to Venezuelan workers would substantially reduce their rates of informality and increase their average earnings.

Suggested Citation

  • Olivieri, Sergio & Ortega, Francesc & Rivadeneira, Ana & Carranza, Eliana, 2020. "Shoring up Economic Refugees: Venezuelan Migrants in the Ecuadorian Labor Market," IZA Discussion Papers 13502, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13502
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    References listed on IDEAS

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    Cited by:

    1. Demirci, Murat & Kırdar, Murat Güray, 2023. "The labor market integration of Syrian refugees in Turkey," World Development, Elsevier, vol. 162(C).
    2. Christian Gunadi, 2021. "The Labour Market Effects of Venezuelan Refugee Crisis in the United States," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(6), pages 1311-1340, December.
    3. Shamsuddin,Mrittika & Acosta,Pablo Ariel & Battaglin Schwengber,Rovane & Fix,Jedediah Rooney & Pirani,Nikolas, 2021. "Integration of Venezuelan Refugees and Migrants in Brazil," Policy Research Working Paper Series 9605, The World Bank.

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    More about this item

    Keywords

    Ecuador; Venezuela; migration; skills; credentials; legalization;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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