Effects of immigration on the Chilean labor market through an occupational and wage analysis (2010-2019)

Abstract

This study analyzes the impact of immigration on the Chilean labor market during the period 2010-2019, focusing on three main dimensions: the number of employed individuals, wage evolution, and occupational distribution. Eco­nometric techniques, specifically panel data models and simple linear regressions, are used to assess both the contemporaneous and lag­ged effects of variations in the proportion of foreign workers on the employment and wages of Chilean workers. The results indicate that, although significant changes occurred in the composition of nationalities and occupational distribution of immigrants during the analyzed period, there is no statistically significant evi­dence that a higher presence of foreign workers has substantially influenced employment levels or wages for Chilean workers. These findings are crucial for public policy design, as they suggest that immigration has not led to job displacement or downward wage pressures for the local workforce. Consequently, it is recommended to strengthen labor integration strategies for migrants and enhance emplo­yment formalization mechanisms to improve labor market regulation and maximize the economic benefits of immigration.