Heterogeneous Effects of Forced Migration on the Female Labor Market: The Venezuelan Exodus in Colombia

In this paper, we analyze the impact of Venezuelan migration on the female labor market in Colombia. Following the economic crisis in Venezuela, more than 1.5 million Venezuelans arrived in Colombia in the period 2016–2019. Using an instrumental variables approach, we find that the sudden influx of millions of migrants reduced the labor force participation of less-skilled native women due to a disproportionate increase of competition in economic activities in which they were more concentrated. On the other hand, migration positively affected the labor force participation for high-skilled women with children. When testing the underlying mechanisms of this latter result, we find a reduction in the time spent on childcare and an increase in the probability of hiring domestic service, explained by a decrease in the cost of this service due to the Venezuelan exodus.