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Impact of Refugees on Immigrants’ Labor Market Outcomes

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  • Bilal Malaeb

    (University of Oxford)

  • Jackline Wahba

Abstract

The Syrian refugee influx in Jordan came on top of an additional 1.6 million foreigners residing in Jordan. The non-national population of refugees and immigrants had increased Jordan’s population of 6.6 million by about 45%. This raises an important question on whether the inflow of refugees has displaced immigrants in the Jordanian labor market. In this paper, we use novel data from Jordan from before and after the Syrian refugee influx to test whether economic immigrants were affected by Syrian refugees. We address several threats to identifications: the selectivity of immigrants and the geographic sorting of immigrants and refugees within Jordan using instrumental variable approach. We find that, as a result of the Syrian refugee influx, immigrants were more likely to work in the informal sector, and they worked fewer hours and had lower total wages as a result. The results suggest that the main competition that occurred in the Jordanian labor market was not between refugees and natives, but rather between refugees and economic migrants.

Suggested Citation

  • Bilal Malaeb & Jackline Wahba, 2018. "Impact of Refugees on Immigrants’ Labor Market Outcomes," Working Papers 1194, Economic Research Forum, revised 10 May 2018.
  • Handle: RePEc:erg:wpaper:1194
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    References listed on IDEAS

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    Cited by:

    1. Caroline Krafft & Susan Razzaz & Caitlyn Keo & Ragui Assaad, 2019. "The Number and Characteristics of Syrians in Jordan: A Multi-Source Analysis," Working Papers 1288, Economic Research Forum, revised 2019.
    2. Gentian Kaprata, 2020. "Strengthening the Importance of the Citizen in Territorial Government: A Necessity for Development and Modernization of Albania - A Libertarian Approach to Territorial Issues," European Journal of Social Sciences Education and Research Articles, Revistia Research and Publishing, vol. 7, September.
    3. Aksoy, Cevat Giray & Tumen, Semih, 2021. "Local Governance Quality and the Environmental Cost of Forced Migration," Journal of Development Economics, Elsevier, vol. 149(C).
    4. Fallah, Belal & Krafft, Caroline & Wahba, Jackline, 2019. "The impact of refugees on employment and wages in Jordan," Journal of Development Economics, Elsevier, vol. 139(C), pages 203-216.
    5. Krafft Caroline & Assaad Ragui, 2021. "Introducing the Jordan Labor Market Panel Survey 2016," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-42, January.
    6. Krafft Caroline & Assaad Ragui & Rahman Khandker Wahedur, 2021. "Introducing the Egypt Labor Market Panel Survey 2018," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-40, January.
    7. Alhawarin, Ibrahim & Assaad, Ragui & Elsayed, Ahmed, 2021. "Migration shocks and housing: Short-run impact of the Syrian refugee crisis in Jordan," Journal of Housing Economics, Elsevier, vol. 53(C).
    8. Lucia Hanmer & Eliana Rubiano & Julieth Santamaria & Diana J. Arango, 2020. "How does poverty differ among refugees? Taking a gender lens to the data on Syrian refugees in Jordan," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 208-242, July.
    9. Zeynep Sahin Mencutek & Ayat J. Nashwan, 2021. "Perceptions About the Labor Market Integration of Refugees: Evidences from Syrian Refugees in Jordan," Journal of International Migration and Integration, Springer, vol. 22(2), pages 615-633, June.
    10. Deole, Sumit S. & Huang, Yue, 2020. "How do new immigration flows affect existing immigrants? Evidence from the refugee crisis in Germany," GLO Discussion Paper Series 579, Global Labor Organization (GLO).
    11. Leonardo Peñaloza Pacheco, 2019. "Living with the Neighbors: The Effect of Venezuelan Forced Migration on Wages in Colombia," CEDLAS, Working Papers 0248, CEDLAS, Universidad Nacional de La Plata.

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