Winners and losers among a refugee-hosting population
AbstractEvery year, thousands of refugees are forced to leave their countries of origin and are hosted by their neighboring countries. However, very little is known about the impact of these refugees on the local economy and its inhabitants. Based on a hypothesis formulated during a two-month iterative field research, a theoretical framework is used to understand how the refugee inflow would affect the good and labour markets of the local economy. We then test the theoretical predictions regarding the potential winners and losers among the refugee-hosting population, using household panel data collected in the region of Kagera in Tanzania. Our identification strategy exploits both time and spatial variations in the way households traced between 1991 and 2004 have been affected by the refugee inflows originating from Burundi (1993) and Rwanda (1994). Our results show that local hosts do not necessarily suffer from the refugee presence. Net economic benefits could even emerge provided a sufficient mass of refugees is gathered. Furthermore, the economic benefits appear to be unevenly distributed among the refugeehosting population. Agricultural workers are likely to suffer the most from an increase in competition on the labor markets and the surging prices of several goods. On the contrary, non-agricultural workers and self-employed farmers are in a better position to benefit from such a refugee inflow. We also conjecture that the welfare deterioration experienced by those involved into business could be explained a selection effect resulting from the reported entry of larger-scale entrepreneurs from other regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2009034.
Date of creation: 01 May 2009
Date of revision:
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
refugees; Tanzania migration;
Other versions of this item:
- Jean-François Maystadt & Philip Verwimp, 2009. "Winners and Losers Among a Refugee-Hosting Population," HiCN Working Papers 60, Households in Conflict Network.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
- Maystadt, Jean-Francois, 2011.
"Poverty reduction in a refugee-hosting economy: A natural experiment,"
IFPRI discussion papers
1132, International Food Policy Research Institute (IFPRI).
- Maystadt, Jean-Francois, 2012. "Poverty Reduction in a Refugee-Hosting Economy. A Natural Experiment," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126259, International Association of Agricultural Economists.
- Akresh, Richard & Lucchetti, Leonardo & Thirumurthy, Harsha, 2012.
"Wars and child health: Evidence from the Eritrean–Ethiopian conflict,"
Journal of Development Economics,
Elsevier, vol. 99(2), pages 330-340.
- Richard Akresh & Leonardo Lucchetti & Harsha Thirumurthy, 2010. "Wars and Child Health: Evidence from the Eritrean-Ethiopian Conflict," HiCN Working Papers 89, Households in Conflict Network.
- Akresh, Richard & Lucchetti, Leonardo & Thirumurthy, Harsha, 2011. "Wars and Child Health: Evidence from the Eritrean-Ethiopian Conflict," IZA Discussion Papers 5558, Institute for the Study of Labor (IZA).
- Baez, Javier E., 2011.
"Civil wars beyond their borders: The human capital and health consequences of hosting refugees,"
Journal of Development Economics,
Elsevier, vol. 96(2), pages 391-408, November.
- Baez, Javier E., 2008. "Civil Wars beyond their Borders: The Human Capital and Health Consequences of Hosting Refugees," IZA Discussion Papers 3468, Institute for the Study of Labor (IZA).
- Elena Fiddian-Qasmiyeh & Isabel Ruiz & Carlos Vargas-Silva & Roger Zetter, 2012. "Assessing the Impacts and Costs of Forced Displacement : Volume 1. A Mixed Methods Approach," World Bank Other Operational Studies 16096, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If references are entirely missing, you can add them using this form.