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International migration in Venezuela and the Growth Collapse - page 20 / 22

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Instrumental variables regression

For labor market outcome Yjt in “group” (industry or state) j and year t:

Yjt = 0Fraction_Colombianjt + 1Fraction_Europeanjt +…

+ year fixed effects

+ group j fixed effects

+ jt

Fraction_Colombianjt , Fraction_Europeanjt, … are predicted values from first stage

Coefficients 0, 1, … are effect of exogenous changes in fraction foreign born on labor market outcomes of natives in same “group”

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