PublicDisclosureAuthorized PublicDisclosureAuthorized ChallengesandopportunitiesoftheeconomicintegrationoftheVenezuelanpopulationinthePeruvianlabormarket October2023 Withthesupportof: Tableofcontents Tableoffigures3 Acknowledgments4 1.Introduction5 2.SometechnicaldetailsaboutENPOVEIIandthemethodologicalapproach7 3.ProfileofVenezuelanrefugeesandmigrantsofworkingage9 4VenezuelanworkersinthePeruvianlabormarket14 5.WhatchallengesdoesPerufacetointegrateVenezuelanworkersintohigh-qualityjobs?28 5.1.Barriersintheregulatoryprocesstovalidatetheireducationaldegrees29 5.2.Migrationpolicyandstatus31 5.3.AttitudestowardsVenezuelanmigration33 6.Policyrecommendations36 References41 Annex1.Otherdatasourcesusedintheanalysis44 Tableoffigures Figure1.DistributionoftheVenezuelanandPeruvianpopulationbysex10 Figure2.Educationallevelbyworkingagepopulation10 Figure3.Distributionofworkingagepopulationbyentryyearcohort11 Figure4.Educationallevelofworkingagepopulationbyentryyearcohort11 Figure5.TechnicalcareersamongVenezuelansthatcompletedtheirnon-universitystudies12 Figure6.ProfessionalcareersamongVenezuelansthatcompletedtheiruniversitystudies12 Figure7.EducationallevelofVenezuelanworkersbygender12 Figure8.Laborforceparticipationratebygender13 Figure9.Occupationalcategorybygender14 Figure10.Distributionofworkersbyeconomicactivity15 Figure11.DistributionofworkersbyoccupationinVenezuelaandPeru15 Figure12.Distributionofworkersbyfirmsize17 Figure13.Informalityratebylatesteducationallevelattained,202217 Figure14.Workersthatperformedanyactivitywithoutreceivingtheagreedpaymentbyinformalitystatus18 Figure15.Workersthatperformedanyactivitywithoutreceivingtheagreedpaymentbyfirmsize18 Figure16.Workersthatperformedanyactivitywithoutreceivingtheagreedpaymentbyeconomicsector19 Figure17.Monetaryincomebyeducationallevel20 Figure18.Monetaryincomebyinformalitylevel20 Figure19.Hoursworkedperweekatalltheiroccupations20 Figure20.Incomeperhourworkedinalloccupations20 Figure21.Countryoforiginofdriversanddeliveryassociates22 Figure22.Highesteducationallevelachievedbyassociatesandnationality22 Figure23.MonthlyincomeofVenezuelanassociatesbytypeofdigitalplatform22 Figure24.Formalworkersbynationality,2017-2023*23 Figure25.EvolutionofVenezuelanlaborforceparticipationinformallabormarket23 Figure26.Remittancessentabroadbyeducationallevelduringthelast3months,202224 Figure27.ValidationofdegreesamongtheVenezuelanpopulationbyeducationallevelachieved,2022 26 Figure28.Reasonsfornotvalidatingtheireducationaldegrees,202226 Figure29.InformalitylevelsbytypeofimmigrationpermittostayinPeru,202228 Figure30.Densityestimatesofannuallaborincome29 Figure31.Laborincometaxbynationality29 Figure32.Venezuelanworkersthatreportedhavingexperienceddiscriminationanddiscriminationattheirworkplacesbyeducationallevel,202230 Figure33.PerceptionsregardingtheVenezuelanmigrationinPeru30 Figure34.Informalityratebydiscriminationstatus,202231 Figure35.Monthlyaverageincomebygenderanddiscriminationstatus,202231 Acknowledgments The“ChallengesandopportunitiesoftheeconomicintegrationoftheVenezuelanPopulationinthePeruvianlabormarket”reportwaspreparedbyYuliaValdivia,ElianaRubianoandNataliaGarbiras-Díaz.TheauthorswouldliketothankMaddalenaHonorati,JosefinaPosadas,MariaEugeniaDávalos,CarolinaMejia-Mantilla,CarlosRodríguez-Castelán,JefferyTanner,MichelleOsorio,PatriciaDeNarvaez,PaulaRossiasco,GretaGranados,AneArceandLeslieMendezfortheirinsightfulcommentsandsuggestions.TheauthorsalsothankGonzaloRiveraforsubstantialcontributionstothereport. ThisworkwascarriedoutaspartofthePovertyandEquityGlobalPracticeprogramandwithfundingfromtheWorldBank-UNHCRJointDataCenter(JDC).TheteamisgratefultotheJDCandthePeruvianNationalStatisticsOffice(INEIbyitsacronyminSpanish)fortheelaborationoftheSurveyDirectedtotheVenezuelanPopulationResidingintheCountry(ENPOVE)2022. 1.Introduction PeruisoneofthecountriesintheregionthatisexperiencingagreatermigratoryflowofVenezuelans.AccordingtothelatestfigurespublishedbytheRefugeeandMigrantWorkingGroupinPeru(GTRM,foritsacronyminSpanish)intheR4Vdataplatform(PlataformadeCoordinaciónInteragencialparaRefugiadosyMigrantesdeVenezuela)1,asofJuly2022,thenumberofVenezuelansinPerualreadyexceededonemillion,makingthelatterthesecondlargestreceivingcountryintheregionafterColombia(R4V,2023).2 Asrefugeesandmigrantsseektorebuildtheirlivesinthenewhostcountry,theymaybeexposedtoseveralbarriers(e.g.,language,legalrestrictions,lackofinformation,etc.).Indeed,along-standingliteratureonimmigrantintegrationhasshownthatthispopulationfacesnumerouschallenges,includingdiscrimination,theneedforformalpermits,skillmismatches,orevenlongwaitingperiodsandotherbureaucratichurdlestoregularizetheirstatus.3 Theevidencesuggeststhesebarriersareconsequentialforrefugees’andmigrants’economicintegration.Forinstance,recentworkbyAhrensetal.(2023)showsthatlabormarketrestrictionsonrefugeesinSwitzerlandleadtosignificantreductionsintheiremploymentandearningsflows,andthattheseeffectsarelong-lasting.Similarly,Bratsbergetal.(2002)provideevidenceofpos