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Conflict-induced displacement and labour market outcomes: evidence from post-war Bosnia and Herzegovina

  • Florence Kondylis

This study uses a longitudinal data source to study the effects of conflict-induced displacement on labour market outcomes for Bosnians in post-war Bosnia and Herzegovina. To account for endogeneity in the displacement status, I exploit the fact that the level of violence in the pre-war residence likely affected the displacement decision for Bosnians and yet is not associated to economic performance. I find evidence of positive selection into displacement, i.e. more "able" individuals in terms of labour market outcomes are more likely to be displaced, and that displaced Bosnians men and women are less likely to be in work relative to stayers. Interestingly, whereas this translates into higher unemployment for men, it decreases women's participation with no effect on unemployment once selection is accounted for. The informality of the labour market in BiH and the destruction of networks are not only the most plausible candidates to explain the high cost of displacement in terms of labour market outcomes, but they also help rationalise the lack of an effect on participation for displaced men. However, differences in selection suggest that the experience of war was highly contrasted along gender lines and that sociological and cultural factors may also play a significant role.

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File URL: http://eprints.lse.ac.uk/19670/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 19670.

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Length: 50 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:ehl:lserod:19670
Contact details of provider: Postal: LSE Library Portugal Street London, WC2A 2HD, U.K.
Phone: +44 (020) 7405 7686
Web page: http://www.lse.ac.uk/

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