Living with the neighbors: The effect of Venezuelan forced migration on the labor market in Colombia

I estimate the effect of the Venezuelan exodus on the Colombian labor market. The economic and social crisis in Venezuela triggered one of the most important migratory exoduses in recent decades: more than 4 million Venezuelans left their country and close to 1.8 million arrived in Colombia. I show that an increase in 1 p.p of labor supply due the migratory flow caused a decline in hourly wages in Colombia of 0.4% and a negative effect of 0.1 p.p. on the employment rate of low-skilled workers. The drop in wages was greater for men, low-skilled and informal workers.