Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms

Autores
Lombardo, Carlo; Peñaloza Pacheco, Leonardo José
Año de publicación
2021
Idioma
inglés
Tipo de recurso
documento de trabajo
Estado
versión enviada
Descripción
This paper studies the impact of a massive skilled labor supply shock on Colombian manufacturing firms’ exports, the Venezuelan exodus. We exploit crosssectional and time variability of Venezuelan forced migrants’ settlements in Colombian sub-national areas through an enclave instrumental variables approach to account for the selection of immigrants’ location. Using yearly customs data from 2013 to 2019, we find that the Venezuelan migration improved Colombian manufacturing firms’ export performance, particularly to high-income countries of the OECD located in North America and low-income countries. This effect was stronger for firms that exported less prior to the exodus (2012). Furthermore, using a detailed yearly panel of manufacturing firms from 2013 to 2019 we identify the potential labor market driving mechanism of the trade-creation effect: immigrants lowered exporting firms’ blue-collar wages, and allowed them to upgrade their labor force skill composition, namely firms were able to hire workers more compatible with exports to developed destinations.
Centro de Estudios Distributivos, Laborales y Sociales
Materia
Ciencias Económicas
Forced migration
Trade
Skill-upgrading
Colombia
Venezuela
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/121902

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network_name_str SEDICI (UNLP)
spelling Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firmsLombardo, CarloPeñaloza Pacheco, Leonardo JoséCiencias EconómicasForced migrationTradeSkill-upgradingColombiaVenezuelaThis paper studies the impact of a massive skilled labor supply shock on Colombian manufacturing firms’ exports, the Venezuelan exodus. We exploit crosssectional and time variability of Venezuelan forced migrants’ settlements in Colombian sub-national areas through an enclave instrumental variables approach to account for the selection of immigrants’ location. Using yearly customs data from 2013 to 2019, we find that the Venezuelan migration improved Colombian manufacturing firms’ export performance, particularly to high-income countries of the OECD located in North America and low-income countries. This effect was stronger for firms that exported less prior to the exodus (2012). Furthermore, using a detailed yearly panel of manufacturing firms from 2013 to 2019 we identify the potential labor market driving mechanism of the trade-creation effect: immigrants lowered exporting firms’ blue-collar wages, and allowed them to upgrade their labor force skill composition, namely firms were able to hire workers more compatible with exports to developed destinations.Centro de Estudios Distributivos, Laborales y Sociales2021-07info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/121902enginfo:eu-repo/semantics/altIdentifier/url/https://www.cedlas.econo.unlp.edu.ar/wp/no-283/info:eu-repo/semantics/altIdentifier/issn/1853-0168info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/4.0/Creative Commons Attribution 4.0 International (CC BY 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:28:59Zoai:sedici.unlp.edu.ar:10915/121902Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:29:00.13SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
title Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
spellingShingle Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
Lombardo, Carlo
Ciencias Económicas
Forced migration
Trade
Skill-upgrading
Colombia
Venezuela
title_short Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
title_full Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
title_fullStr Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
title_full_unstemmed Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
title_sort Exports “brother-boost”: the trade-creation and skill-upgrading effect of Venezuelan forced migration on Colombian manufacturing firms
dc.creator.none.fl_str_mv Lombardo, Carlo
Peñaloza Pacheco, Leonardo José
author Lombardo, Carlo
author_facet Lombardo, Carlo
Peñaloza Pacheco, Leonardo José
author_role author
author2 Peñaloza Pacheco, Leonardo José
author2_role author
dc.subject.none.fl_str_mv Ciencias Económicas
Forced migration
Trade
Skill-upgrading
Colombia
Venezuela
topic Ciencias Económicas
Forced migration
Trade
Skill-upgrading
Colombia
Venezuela
dc.description.none.fl_txt_mv This paper studies the impact of a massive skilled labor supply shock on Colombian manufacturing firms’ exports, the Venezuelan exodus. We exploit crosssectional and time variability of Venezuelan forced migrants’ settlements in Colombian sub-national areas through an enclave instrumental variables approach to account for the selection of immigrants’ location. Using yearly customs data from 2013 to 2019, we find that the Venezuelan migration improved Colombian manufacturing firms’ export performance, particularly to high-income countries of the OECD located in North America and low-income countries. This effect was stronger for firms that exported less prior to the exodus (2012). Furthermore, using a detailed yearly panel of manufacturing firms from 2013 to 2019 we identify the potential labor market driving mechanism of the trade-creation effect: immigrants lowered exporting firms’ blue-collar wages, and allowed them to upgrade their labor force skill composition, namely firms were able to hire workers more compatible with exports to developed destinations.
Centro de Estudios Distributivos, Laborales y Sociales
description This paper studies the impact of a massive skilled labor supply shock on Colombian manufacturing firms’ exports, the Venezuelan exodus. We exploit crosssectional and time variability of Venezuelan forced migrants’ settlements in Colombian sub-national areas through an enclave instrumental variables approach to account for the selection of immigrants’ location. Using yearly customs data from 2013 to 2019, we find that the Venezuelan migration improved Colombian manufacturing firms’ export performance, particularly to high-income countries of the OECD located in North America and low-income countries. This effect was stronger for firms that exported less prior to the exodus (2012). Furthermore, using a detailed yearly panel of manufacturing firms from 2013 to 2019 we identify the potential labor market driving mechanism of the trade-creation effect: immigrants lowered exporting firms’ blue-collar wages, and allowed them to upgrade their labor force skill composition, namely firms were able to hire workers more compatible with exports to developed destinations.
publishDate 2021
dc.date.none.fl_str_mv 2021-07
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
info:eu-repo/semantics/submittedVersion
Documento de trabajo
http://purl.org/coar/resource_type/c_8042
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dc.identifier.none.fl_str_mv http://sedici.unlp.edu.ar/handle/10915/121902
url http://sedici.unlp.edu.ar/handle/10915/121902
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.cedlas.econo.unlp.edu.ar/wp/no-283/
info:eu-repo/semantics/altIdentifier/issn/1853-0168
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by/4.0/
Creative Commons Attribution 4.0 International (CC BY 4.0)
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by/4.0/
Creative Commons Attribution 4.0 International (CC BY 4.0)
dc.format.none.fl_str_mv application/pdf
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