The Fiscal Impact of Immigration: Labor Displacement, Wages, and the Allocation of Public Spending*

We reexamine the effect of immigration on public finances by accounting for second-order effects. We exploit exogenous variation in immigration across Colombian metropolitan areas between 2013 and 2018, resulting from the large increase in Venezuelan immigrants, and instrument immigrants’ residential location using preexisting settlement patterns and the distance between origin-destination flows. Our findings indicate that […]

The Contribution of Workers, Workplaces, and Sorting to Wage Inequality in Mexico

We use a matched worker-workplace dataset comprising the near universe of formal private-sector workers in Mexico to estimate the contribution of average workplace-specific wagepremia, worker-level characteristics, and assortative matching on Mexico’s wage inequalitybetween 2004 and 2018. To this end, we regress log earnings on sets of worker and work-place fixed effects and perform a decomposition […]

The Fiscal Impact of Immigration: Labor Displacement, Wages, and the Allocation of Public Spending

We reexamine the effect of immigration on public finances by accounting for second-order effects. We exploit exogenous variation in immigration across Colombian metropolitan areas between 2013 and 2018,resulting from the large increase in Venezuelan immigrants,and instrument immigrants’ residential location using pre-existing settlement patterns and the distance between origin-destination flows. We find that immigration did not […]