This paper presents evidence of the effect of the recent phases of the business cycle in Spain and
United States, proxied by their respective unemployment rates, on the labor market of Colombian
cities with high migration tradition. These countries are the main destination for labor Colombian
migrants. Using information from the household survey between 2006 and 2011 for urban areas in
Colombia and a differences-in-differences approach we find that unemployment rates of those
countries negatively affect the probability and the amount of remittances received by Colombian
households living in areas with high and moderate migration tradition. At a second stage we
provide evidence that unemployment rates of those countries positively affect the labor force
participation decisions in Colombian regions with the highest migration tradition.