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Conflict displacement and labor market outcomes in post-war Bosnia & Herzegovina

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  • Florence Kondylis

    () (Columbia University)

Abstract

The 1992/95 war in Bosnia and Herzegovina (BiH) drove about 1.3 Million people into displacement (UNHCR). This study uses a longitudinal data source to document the nature of individual selection into conflict-induced displacement and the effects of displacement on labor market outcomes for Bosnians in post-war BiH. 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 labor market outcomes are more likely to be displaced, and that displaced Bosnian men and women are less likely to be in work relative to stayers. Interestingly, whereas worklessness translates into higher unemployment for men, it decreases the women’s participation with no effect on unemployment once selection is accounted for. The informality of the labor market in BiH and the destruction of networks are not only the most plausible candidates to explain the negative effect of displacement on labor market performance, but also help rationalise the lack of an effect on participation for displaced men.

Suggested Citation

  • Florence Kondylis, 2008. "Conflict displacement and labor market outcomes in post-war Bosnia & Herzegovina," HiCN Working Papers 45, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:45
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    References listed on IDEAS

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    Cited by:

    1. Christopher Blattman & Edward Miguel, 2009. "Civil War: A Review of Fifty Years of Research," Working Papers id:2231, eSocialSciences.
    2. Coupe, Tom & Obrizan, Maksym, 2016. "The impact of war on happiness: The case of Ukraine," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 228-242.
    3. Christopher Blattman & Edward Miguel, 2010. "Civil War," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 3-57, March.
    4. Nermin Oruc, 2015. "Urban IDPs and Poverty: Analysis of the Effect of Mass Forced Displacement on Urban Poverty in Bosnia and Herzegovina," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 17(1), pages 47-70, June.

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