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Beschreibung:
Costa Rica experienced in recent years increasing international migration from neighboring countries due to political, economic and social reasons. This paper is the first to disentangle the impact of migration on wages for native Costa Rican from the impact for already settled migrants. We analyze the effect of migration on wages within cells of education-experienceregion as suggested by the so-called spatial correlation approach. Furthermore, we control for endogeneity by constructing a shift-share instrument and for heterogeneity using different sets of fixed effects. Our results show that on average, immigration has no effect on the wages of both natives and migrant workers with comparable skills for the period 2011 to 2019. The outcomes hold when using the national labor market approach as well as when changing the panel data estimation strategy. We also find that the effects vary depending on workers' educational level and that for some specific levels negative and significant effects are observed, in particular for high skilled workers.