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The Impact of Intra-State Conflict on Economic Welfare and Consumption Smoothing: Empirical Evidence for the Displaced Population in Colombia

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Author Info
Ana María Ibáñez () (Universidad de los Andes)
Andrés Moya () (Universidad de los Andes)

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Abstract

Intra-state conflicts and forced displacement impose a heavy burden upon the civil population, and produce severe welfare losses. Using a household level data administered to 2.322 Colombian displaced households, we estimate welfare losses for displaced households, as well as the determinants of labor income and aggregate consumption in reception sites. We also asses whether households are able to smooth consumption, and analyze the strategies they are compelled to adopt. Our results indicate that forced displacement entails a significant asset loss, limits the ability of household to generate income, disrupts risk-sharing mechanisms, and obliges households to rely on costly strategies in order to smooth consumption. Thus, the short and long-term consequences of forced displacement are large, and the need to design and implement specific policies for victims of internal conflict is evident. These policies, in particular, should provide mechanisms to prevent substantial welfare losses and to create conditions for sustainable income generation processes.

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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 23.

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Length: 35 pages
Date of creation: 2006
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Handle: RePEc:hic:wpaper:23

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  2. Morduch, Jonathan, 1994. "Poverty and Vulnerability," American Economic Review, American Economic Association, vol. 84(2), pages 221-25, May. [Downloadable!] (restricted)
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  3. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Harvard Institute of Economic Research Working Papers 1727, Harvard - Institute of Economic Research.
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  5. Tom Bundervoet & Philip Verwimp, 2005. "Civil War and Economic Sanctions: Analysis of Anthropometric Outcomes in Burundi," HiCN Working Papers 11, Households in Conflict Network. [Downloadable!]
  6. Patricia Justino & Philip Verwimp, 2006. "Poverty Dynamics, Violent Conflict and Convergence in Rwanda," HiCN Working Papers 16, Households in Conflict Network. [Downloadable!]
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  7. Ligon, Ethan & Thomas, Jonathan P. & Worrall, Tim, 1997. "Informal insurance arrangements in village economies," CUDARE Working Paper Series 825, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
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  17. Behrman, Jere R, 1988. "Intrahousehold Allocation of Nutrients in Rural India: Are Boys Favored? Do Parents Exhibit Inequality Aversion?," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 32-54, March. [Downloadable!] (restricted)
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  20. repec:wuk:andedp:9705 is not listed on IDEAS
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(explanations, 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.)

  1. Valentina Calderón & Ana María Ibáñez, 2009. "Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia," Research Working Papers 14, MICROCON - A Micro Level Analysis of Violent Conflict. [Downloadable!]
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  2. Ana María Ibáñez & Andrés Moya, 2009. "Do conflicts create poverty traps? Asset losses and recovery for displaced households in Colombia," Research Working Papers 10, MICROCON - A Micro Level Analysis of Violent Conflict. [Downloadable!]
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