The effect of a labor supply shock on factors productivity : the case of a venezuelan migration in Colombia

Abstract

This document analyses the potential effects of a labor supply shock (Venezuelan immigration) on factors productivity in Colombia. Using aggregate data on employment and output in the Colombian departments, we nd that under the 2014-2018 time period, Venezuelan immigration has signi cant effects on multi-factor productivity and other product-related variables in the Colombian departments. The empirical strategy used shows that the mechanism of transmission of the effect is the skill bias of Venezuelan immigrants.