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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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  • Ana María Ibáñez

    (Universidad de los Andes)

  • Andrés Moya

    (Universidad de los Andes)

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.

Suggested Citation

  • Ana María Ibáñez & Andrés Moya, 2006. "The Impact of Intra-State Conflict on Economic Welfare and Consumption Smoothing: Empirical Evidence for the Displaced Population in Colombia," HiCN Working Papers 23, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:23
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    Cited by:

    1. Nathan Fiala, 2009. "The Consequences of Forced Displacement in Northern Uganda," HiCN Working Papers 65, Households in Conflict Network.
    2. Michał Burzyński & Frédéric DOCQUIER & Hendrik SCHEEWEL, 2021. "The Geography of Climate Migration," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 87(3), pages 345-381, September.
    3. Valentina Calderón & Ana María Ibáñez, 2005. "Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia," Documentos CEDE 5851, Universidad de los Andes, Facultad de Economía, CEDE.
    4. Ana María Ibañez & Andrés Moya, 2010. "Do Conflicts Create Poverty Traps? Asset Losses and Recovery for Displaced Households in Colombia," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 137-172, National Bureau of Economic Research, Inc.
    5. Michał Burzyński & Christoph Deuster & Frédéric Docquier & Jaime de Melo, 2022. "Climate Change, Inequality, and Human Migration," Journal of the European Economic Association, European Economic Association, vol. 20(3), pages 1145-1197.
    6. Nathan Fiala, 2015. "Economic Consequences of Forced Displacement," Journal of Development Studies, Taylor & Francis Journals, vol. 51(10), pages 1275-1293, October.
    7. Lam, Lai Ming & Paul, Saumik, 2013. "Displacement and Erosion of Informal Risk-Sharing: Evidence from Nepal," World Development, Elsevier, vol. 43(C), pages 42-55.
    8. Patricia Justino, 2017. "Food Security, Peacebuilding and Gender Equality: Conceptual Framework and Future Directions," HiCN Working Papers 257, Households in Conflict Network.
    9. Apeti, Ablam Estel, 2023. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," World Development, Elsevier, vol. 161(C).
    10. Edgar Silva Quintero & José Alberto Molina & J. Ignacio Gimenez-Nadal, 2016. "How Forced Displacements Caused by a Violent Conflict Affect Wages in Colombia," Working Papers id:10876, eSocialSciences.
    11. Patricia Justino, 2009. "The Impact of Armed Civil Conflict on Household Welfare and Policy Responses," Research Working Papers 12, MICROCON - A Micro Level Analysis of Violent Conflict.
    12. Juliana Helo, 2011. "Una evaluación de los programas de estabilización para la población desplazada en Colombia - estimación de un modelo estructural," Documentos CEDE 8915, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Nancy Lozano-Gracia & Gianfranco Piras & Ana Maria Ibáñez & Geoffrey J. D. Hewings, 2010. "The Journey to Safety: Conflict-Driven Migration Flows in Colombia," International Regional Science Review, , vol. 33(2), pages 157-180, April.
    14. Florent MCISAAC & Daniel BASTIDAS, 2019. "Reaching Brazil's Nationally Determined Contributions: An Assessment of the Key Transitions in Final Demand and Employment," Working Paper 911644f9-625d-496f-8ecf-8, Agence française de développement.
    15. Patricia Justino & Ivan Cardona & Rebecca Mitchell & Catherine Müller, 2012. "Quantifying the Impact of Women’s Participation in Post-Conflict Economic Recovery," HiCN Working Papers 131, Households in Conflict Network.
    16. Christie Lam & Saumik Paul & Vengadeshvaran Sarma, 2016. "Reversal of fortune? The long-term effect of conservation-led displacement in Nepal," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 401-419, October.
    17. Patricia Justino, 2012. "Nutrition, Governance and Violence: A Framework for the Analysis of Resilience and Vulnerability to Food Insecurity in Contexts of Violent Conflict," HiCN Working Papers 132, Households in Conflict Network.
    18. Yashodhan Ghorpade, 2012. "Coping Strategies in Natural Disasters and under Conflict: A Review of Household Responses and Notes for Public Policy," HiCN Working Papers 136, Households in Conflict Network.
    19. Ablam Estel Apeti, 2022. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," Post-Print hal-03819779, HAL.
    20. Hernando Grueso, 2023. "Unveiling the Causal Mechanisms Within Multidimensional Poverty," Evaluation Review, , vol. 47(6), pages 1107-1134, December.

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