Speaker: Alejandro Micco
Co-author: Nicolás Paris
Affiliation: FEN UChile
Date and time: Wednesday, October 29, 2025 14:30 (Santiago, GMT-04:00)
Location:

• Sala Conferencias at the Central Bank of Chile, Agustinas 1180.
• Online meeting

Registration: seminarios@bcentral.cl

Abstract: This study examines the effects of migration on the Chilean labor market through a general equilibrium model with search and matching frictions using a random search approach, which allows for a better approximation to long-term equilibria. The study explores the effects of migration on labor variables such as unemployment and wages, as well as evaluates its effects on consumer welfare. The model differs from existing literature by including a gender approach and evaluating the long-term impacts of migration in an emerging economy such as Chile. The study found that the arrival of low-skilled migrants increased wages and decreased the unemployment rate of low-skilled native workers, improving their welfare. However, women experienced a lower increase in their welfare due to the asymmetric arrival of men and women in the migration flow. On the other hand, high-skilled native workers suffered the consequences of the arrival of a higher proportion of highly skilled migrants, generating competition, unemployment, and lower wages. In aggregate terms, migration had a positive effect on the population, but the native population as a whole experienced a decrease in their welfare due to the loss of welfare of high-skilled workers.