Skip to main content

Main menu

  • Home
  • Content
    • Current
    • Ahead of print
    • Archive
    • Supplementary Material
  • Info for
    • Authors
    • Subscribers
    • Institutions
    • Advertisers
  • About Us
    • About Us
    • Editorial Board
  • Connect
    • Feedback
    • Help
    • Request JHR at your library
  • Alerts
  • Free Issue
  • Special Issue
  • Other Publications
    • UWP

User menu

  • Register
  • Subscribe
  • My alerts
  • Log in
  • My Cart

Search

  • Advanced search
Journal of Human Resources
  • Other Publications
    • UWP
  • Register
  • Subscribe
  • My alerts
  • Log in
  • My Cart
Journal of Human Resources

Advanced Search

  • Home
  • Content
    • Current
    • Ahead of print
    • Archive
    • Supplementary Material
  • Info for
    • Authors
    • Subscribers
    • Institutions
    • Advertisers
  • About Us
    • About Us
    • Editorial Board
  • Connect
    • Feedback
    • Help
    • Request JHR at your library
  • Alerts
  • Free Issue
  • Special Issue
  • Follow uwp on Twitter
  • Follow JHR on Bluesky
Research ArticleArticles

Is Informality Good for Business?

The Impacts of Inflows of Internally Displaced Persons on Formal Firms

Sandra V. Rozo and Hernan Winkler
Journal of Human Resources, October 2021, 56 (4) 1141-1186; DOI: https://doi.org/10.3368/jhr.56.4.1018-9794R2
Sandra V. Rozo
Sandra Rozo is an Assistant Professor of Economics at the USC Marshall School of Business ()
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: [email protected]
Hernan Winkler
Hernan Winkler is an Economist at The World Bank. They are grateful to María José Urbina for her excellent work as a research assistant.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Figures & Data
  • Supplemental
  • Info & Metrics
  • References
  • PDF
Loading

References

  1. ↵
    1. Abadie, Alberto , and
    2. Javier Gardeazabal
    . 2003. “The Economic Costs of Conflict: A Case Study of the Basque Country.” American Economic Review 93(1):113–32.
    OpenUrlCrossRefWeb of Science
  2. ↵
    1. Accetturo, Antonio ,
    2. Mateo Bugamelli , and
    3. Andrea Lamorgese
    . 2012. “Welcome to the Machine: Firms Reaction to Low-Skilled Immigration.” Bank of Italy Temi di DiscussioneWorking Paper 846.
  3. ↵
    1. Altindag, Onur ,
    2. Ozan Bakis , and
    3. Sandra Rozo
    . 2018. “Blessing or Burden? The Impact of Refugees on Businesses and The Informal Economy.” SSRN Working Paper 3188406.
  4. ↵
    1. Altonji, Joseph , and
    2. David Card
    . 1991. “The Effects of Immigration on the Labor Market Outcomes of Less-Skilled Natives.” In Immigration, Trade, and the Labor Market, 201–34. Chicago, IL: University of Chicago Press.
  5. ↵
    1. Amaral, Pedro , and
    2. Erwan Quintin
    . 2006. “ACompetitive Model of the Informal Sector.” Journal of Monetary Economics 53(7):1541–53.
    OpenUrlCrossRefWeb of Science
  6. ↵
    1. Banerji, Arup , and
    2. Sanjay Jain
    . 2007. “Quality Dualism.” Journal of Development Economics 84(1):234–50.
    OpenUrl
  7. ↵
    1. Besley, Timothy , and
    2. Torsten Persson
    . 2013. “Taxation and Development.” In Handbook of Public Economics, Volume 5, ed. Alan J. Auerbach et al., 51–110. New York: Elsevier.
    OpenUrl
  8. ↵
    1. Blattman, Christopher , and
    2. Edward Miguel
    . 2010. “Civil War.” Journal of Economic Literature 48(1):3–57.
    OpenUrlCrossRefWeb of Science
  9. ↵
    1. Borjas, George
    . 2003. “The Labor Demand Curve IsDownward Sloping: Reexamining the Impact of Immigration on the Labor Market.” Quarterly Journal of Economics 118(4):1335–74.
    OpenUrlCrossRefWeb of Science
  10. ↵
    1. Borjas, George , and
    2. Joan Monras
    . 2017. “The Labor Market Consequences of Refugee Supply Shocks.” Economic Policy 32(91):361–413.
    OpenUrl
  11. ↵
    1. Bruck, Tilman ,
    2. Wilm Naudé , and
    3. Philip Verwimp
    . 2013. “Business under Fire: Entrepreneurship and Violent Conflict in Developing Countries.” Journal of Conflict Resolution 57(1):3–19.
    OpenUrlCrossRef
    1. Calderón-Mejía, Valentina, and
    2. Ana María Ibáñez
    . 2015. “Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internal Refugees in Colombia.” Journal of Economic Geography 16(3):695–713.
    OpenUrl
  12. ↵
    1. Camacho, Adriana , and
    2. Catherine Rodríguez
    . 2013. “Firm Exit and Armed Conflict in Colombia.” Journal of Conflict Resolution 57(1):89–116.
    OpenUrlCrossRef
  13. ↵
    1. Card, David
    . 2001. “Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration.” Journal of Labor Economics 19(1):22–64.
    OpenUrlCrossRefWeb of Science
  14. ↵
    1. Carrillo, Angela
    . 2009. “Internal Displacement in Colombia: Humanitarian, Economic and Social Consequences in Urban Settings and Current Challenges.” International Review of the Red Cross 91(875):527–46.
    OpenUrl
  15. ↵
    1. Carrizosa, Mercedes , and
    2. Agustí Blasco
    . 2009. “Immigration and Firm Performance: A City-Level Approach.” Investigaciones Regionales (15):111–37.
  16. ↵
    1. Ceritoglu, Evren ,
    2. Gurcihan Yunculer ,
    3. Huzeyfe Torun , and
    4. Semih Tumen
    . 2017. “The Impact of Syrian Refugees on Natives Labor Market Outcomes in Turkey: Evidence from a Quasi-Experimental Design.” IZA Journal of Labor Policy 6(1):5.
    OpenUrl
  17. ↵
    1. Chiswick, Barry
    . 1999. “Are Immigrants Favorably Self-Selected?” American Economic Review 89(2):181–5.
    OpenUrlCrossRefWeb of Science
  18. ↵
    1. Clemens, Michael , and
    2. Jennifer Hunt
    . 2017. “The Labor Market Effects of Refugee Waves: Reconciling Conflicting Results.” NBER Working Paper 23433. Cambridge, MA: NBER.
  19. ↵
    1. Del Carpio, Ximena , and
    2. Mathis Wagner
    . 2015. “The Impact of Syrians Refugees on the Turkish Labor Market.” World Bank Policy Research Working Paper 7402. Washington, DC: World Bank.
    1. Depetris-Chauvin, Emilio , and
    2. Rafael Santos
    . 2018. “Unexpected Guests: The Impact of Internal Displacement Inflows on Rental Prices in Colombian Host Cities.” Journal of Development Economics 134:289–309.
    OpenUrl
  20. ↵
    1. Dustmann, Christian , and
    2. Albrecht Glitz
    . 2015. “How Do Industries and Firms Respond to Changes in Local Labor Supply?” Journal of Labor Economics 33(3):711–50.
    OpenUrl
  21. ↵
    1. El Espectador
    . 2009. “La Situación de los Desplazados.” http://www.elespectador.com/articulo137806-situacion-de-los-desplazados (accessed March 12, 2021).
  22. ↵
    1. El Tiempo
    . 2010. “Fuerza Laboral de Desplazados Impacta Salarios Informales.” http://www.eltiempo.com/archivo/documento/MAM-4088271 (accessed March 12, 2021).
  23. ↵
    1. El Tiempo
    . 2014. “Desempleo entre los Desplazados es del 35,5%.” http://www.eltiempo.com/archivo/documento/CMS-13528618 (accessed March 12, 2021).
    1. Engel, Stefanie , and
    2. Ana María Ibáñez
    . 2007. “Displacement Due to Violence in Colombia: A Household-Level Analysis.” Economic Development and Cultural Change 55(2):335–65.
    OpenUrl
  24. ↵
    1. Galiani, Sebastian , and
    2. Federico Weinschelbaum
    . 2012. “Modeling Informality Formally: Households and Firms.” Economic Inquiry 50(3):821–38.
    OpenUrlCrossRefWeb of Science
  25. ↵
    1. Garay, Luis Jorge
    . 2008. “Proceso Nacional de Verificación de los Derechos de la Población Desplazada.” First Report to the Colombian Constitutional Court.
  26. ↵
    1. Guidolin, Massimo , and
    2. Eliana La Ferrara
    . 2007. “Diamonds Are Forever, Wars Are Not: Is Conflict Bad for Private Firms?” American Economic Review 97(5):1978–93.
    OpenUrlCrossRefWeb of Science
  27. ↵
    1. Ibáñez, Ana María , and
    2. Andrés Moya
    . 2006. “Cómo el Desplazamiento Forzado Deteriora el Bienestar de los Hogares Desplazados?” Análisis y Determinantes del Bienestar en los Municipios de Recepción.
  28. ↵
    1. Ibáñez, Ana María , and
    2. Andrés Moya
    . 2010. “Vulnerability of Victims of Civil Conflicts: Empirical Evidence for the Displaced Population in Colombia.” World Development 38(4):647–63.
    OpenUrl
    1. Ibáñez, Ana María , and
    2. Carlos Eduardo Vélez
    . 2008. “Civil Conflict and Forced Migration: The Micro Determinants and Welfare Losses of Displacement in Colombia.” World Development 36(4):659–76.
    OpenUrl
  29. ↵
    1. Ibáñez, Ana María ,
    2. Andrés Moya , and
    3. Andrea Velásquez
    . 2006. “Hacia una Política Proactiva para la Población Desplazada.” Bogotá: Universidad de los Andes, Secretariado Nacional de Pastoral Social Caritas Colombia.
  30. ↵
    1. Inter Press Service
    . 1999. “Colombia: Desplazados Engrosan Economía Informal de Bogotá.” http://www.ipsnoticias.net/1999/09/repeticion-ciudades-de-america-latina-colombia-desplazados-engrosan-economia-informal-de-bogota/ (accessed March 22, 2021).
  31. ↵
    1. Jaeger, David ,
    2. Joakim Ruist , and
    3. Jan Stuhler
    . 2018. “Shift-Share Instruments and the Impact of Immigration.” NBERWorking Paper 24285. Cambridge, MA: NBER.
  32. ↵
    1. Kerr, Sari ,
    2. William Kerr , and
    3. Lincoln William
    . 2015. “Skilled Immigration and the Employment Structures of US Firms.” Journal of Labor Economics 33:S147–S186.
    OpenUrl
  33. ↵
    1. Kugler, Maurice , and
    2. Eric Verhoogen
    . 2011. “Prices, Plant Size, and Product Quality.” Review of Economic Studies 79(1):307–39.
    OpenUrlWeb of Science
  34. ↵
    1. La Porta, Rafael , and
    2. Andrei Shleifer
    . 2014. “Informality and Development.” Journal of Economic Perspectives 28(3):109–26.
    OpenUrlCrossRef
    1. La Silla Vacía
    . 2012. “Desplazados Dentro de su Misma Ciudad: Las Víctimas más Invisibles en Colombia.” https://lasillavacia.com/historia/desplazados-dentro-de-su-misma-ciudad-las-victimas-mas-invisibles-en-colombia-40579 (accessed March 12, 2021).
  35. ↵
    1. Lewis, Ethan
    . 2011. “Immigration, Skill Mix, and Capital Skill Complementarity.” Quarterly Journal of Economics 126(2):1029–69.
    OpenUrlCrossRefWeb of Science
  36. ↵
    1. Lewis, Ethan , and
    2. Giovanni Peri
    . 2015. “Immigration and the Economy of Cities and Regions.” In Handbook of Regional and Urban Economics, Volume 5, ed. Gilles Duranton , J. Vernon Henderson , and William C. Strange , 625–85. New York: Elsevier.
    OpenUrl
  37. ↵
    1. Lozano-Gracia, Nancy ,
    2. Gianfranco Piras ,
    3. Ana María Ibáñez , and
    4. Geoffrey Hewings
    . 2010. “The Journey to Safety: Conflict-Driven Migration Flows in Colombia.” International Regional Science Review 33(2):157–80.
    OpenUrlCrossRef
    1. Meghir, Costas ,
    2. Renata Narita , and
    3. Jean Marco Robin
    . 2015. “Wages and Informality in Developing Countries.” American Economic Review 105(4):1509–46.
    OpenUrlCrossRef
  38. ↵
    1. Moya, Andrés
    . 2012. “Violence, Emotional Distress and Induced Changes in Risk Aversion among the Displaced Population in Colombia.” In Pacific Development Economics Conference. University of California–Davis.
  39. ↵
    1. Ottaviano, Gianmarco ,
    2. Giovanni Peri , and
    3. Grec Wright
    . 2018. “Immigration, Trade and Productivity in Services: Evidence from UK firms.” Journal of International Economics 112(1):88–108.
    OpenUrl
  40. ↵
    1. Perry, Guillermo
    . 2007. “Informality: Exit and exclusion.” Washington, DC: World Bank Publications.
  41. ↵
    1. Rozo, Sandra
    . 2018. “Is Murder Bad for Business? Evidence from Colombia.” Review of Economics and Statistics 100(5):769–82.
    OpenUrl
  42. ↵
    1. Serneels, Pieter , and
    2. Marijke Verpoorten
    . 2015. “The Impact of Armed Conflict on Economic Performance: Evidence from Rwanda.” Journal of Conflict Resolution 59(4):555–92.
    OpenUrlCrossRef
  43. ↵
    1. Solls, Michael
    . 2010. “Colombia’s Internally Displaced People.” Huffington Post. https://www.huffpost.com/entry/colombias-internally-disp_b_715186 (accessed October 1, 2019).
    1. UNCHR
    . 2015. “Global Trends: Forced Displacement in 2015.” Technical Report.
  44. ↵
    1. UNHCR
    . 2018. “Global Trends. Forced Displacement in 2017.” Technical Report.
  45. ↵
    1. Unidad para la Atención y Reparación de Víctimas
    . 2013. “Informe Nacional de Desplazamiento Forzado en Colombia 1985 a 2012.” Technical Report.
  46. ↵
    1. Vélez, Carlos Eduardo
    . 2002. “Colombia Poverty Report.” Washington, DC: World Bank.
  47. ↵
    1. World Bank
    . 2016. “Forcibly Displaced: Toward a Development Approach Supporting Refugees, the Internally Displaced and their Hosts.” World Bank Report. Washington, DC: World Bank.
PreviousNext
Back to top

In this issue

Journal of Human Resources: 56 (4)
Journal of Human Resources
Vol. 56, Issue 4
2 Oct 2021
  • Table of Contents
  • Table of Contents (PDF)
  • Index by author
  • Back Matter (PDF)
  • Front Matter (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on Journal of Human Resources.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Is Informality Good for Business?
(Your Name) has sent you a message from Journal of Human Resources
(Your Name) thought you would like to see the Journal of Human Resources web site.
Citation Tools
Is Informality Good for Business?
Sandra V. Rozo, Hernan Winkler
Journal of Human Resources Oct 2021, 56 (4) 1141-1186; DOI: 10.3368/jhr.56.4.1018-9794R2

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Share
Is Informality Good for Business?
Sandra V. Rozo, Hernan Winkler
Journal of Human Resources Oct 2021, 56 (4) 1141-1186; DOI: 10.3368/jhr.56.4.1018-9794R2
Twitter logo Facebook logo Mendeley logo
  • Tweet Widget
  • Facebook Like
  • Google Plus One
Bookmark this article

Jump to section

  • Article
    • Abstract
    • I. Introduction
    • II. Colombian Context
    • III. Data
    • IV. Empirical Strategy
    • V. Effects of IDP on Formal Firm’s Decisions
    • VI. Mechanisms
    • VII. Discussion
    • Footnotes
    • References
  • Figures & Data
  • Supplemental
  • Info & Metrics
  • References
  • PDF

Related Articles

  • Google Scholar

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Licensure Tests and Teacher Supply
  • Closing the Gap Between Vocational and General Education?
  • Crossing Borders
Show more Articles

Similar Articles

Keywords

  • D22
  • J61
  • O17
UW Press logo

© 2025 Board of Regents of the University of Wisconsin System

Powered by HighWire