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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. Juliana Helo, 2011. "Una evaluación de los programas de estabilización para la población desplazada en Colombia - estimación de un modelo estructural," DOCUMENTOS CEDE 008915, UNIVERSIDAD DE LOS ANDES-CEDE.
    3. Valentina Calderón & Ana María Ibáñez, 2005. "Labor Market Effects of Migration-Related Supply Shocks: Evidence from Internally Displaced Populations in Colombia," DOCUMENTOS CEDE 005851, UNIVERSIDAD DE LOS ANDES-CEDE.
    4. Gimenez-Nadal, J. Ignacio & Molina, José Alberto & Silva Quintero, Edgar, 2016. "How Forced Displacements Caused by a Violent Conflict Affect Wages in Colombia," IZA Discussion Papers 9926, Institute for the Study of Labor (IZA).
    5. 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.
    6. 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.
    7. 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.
    8. Patricia Justino, 2009. "The Impact of Armed Civil Conflict on Household Welfare and Policy Responses," HiCN Working Papers 61, Households in Conflict Network.
    9. Nathan Fiala, 2012. "The Economic Consequences of Forced Displacement," HiCN Working Papers 137, Households in Conflict Network.
    10. 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.
    11. 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.
    12. 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.

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