Impacts of Forced Immigration: The Venezuelan Diaspora and the Brazilian Labor Market

This article estimates the impact of immigrant influxes on local labor markets, taking advantage of a natural experiment generated by a massive wave of forced migration of Venezuelans to Roraima, a state in northern Brazil, from 2016 onward. Estimates show that a 1% increase in the share of migrants in the state population due to immigration resulted in 1.1% higher earnings for native workers in the formal sector, 0.3% fewer hours worked weekly, and 2.3% higher wages. Results are confirmed by employing a synthetic control method.