IDEAS home Printed from https://ideas.repec.org/p/hic/wpaper/60.html
   My bibliography  Save this paper

Winners and Losers Among a Refugee-Hosting Population

Author

Listed:
  • Jean-François Maystadt

    (Université catholique de Louvain)

  • Philip Verwimp

    (Fund for Scientific Research Flanders, University of Antwerp)

Abstract

Every year, thousands of refugees are forced to leave their countries of origin and are hosted by their neighboring countries. However, very little is known about the impact of these refugees on the local economy and its inhabitants. Based on a hypothesis formulated during a two-month iterative field research, a theoretical framework is used to understand how the refugee inflow would affect the good and labour markets of the local economy. We then test the theoretical predictions regarding the potential winners and losers among the refugee-hosting population, using household panel data collected in the region of Kagera in Tanzania. Our identification strategy exploits both time and spatial variations in the way households traced between 1991 and 2004 have been affected by the refugee inflows originating from Burundi (1993) and Rwanda (1994). Our results show that local hosts do not necessarily suffer from the refugee presence. Net economic benefits could even emerge provided a sufficient mass of refugees is gathered. Furthermore, the economic benefits appear to be unevenly distributed among the refugeehosting population. Agricultural workers are likely to suffer the most from an increase in competition on the labor markets and the surging prices of several goods. On the contrary, non-agricultural workers and self-employed farmers are in a better position to benefit from such a refugee inflow. We also conjecture that the welfare deterioration experienced by those involved into business could be explained a selection effect resulting from the reported entry of larger-scale entrepreneurs from other regions.

Suggested Citation

  • Jean-François Maystadt & Philip Verwimp, 2009. "Winners and Losers Among a Refugee-Hosting Population," HiCN Working Papers 60, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:60
    as

    Download full text from publisher

    File URL: http://www.hicn.org/wp-content/uploads/sites/10/2012/06/wp60.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
    2. Baez, Javier E., 2011. "Civil wars beyond their borders: The human capital and health consequences of hosting refugees," Journal of Development Economics, Elsevier, vol. 96(2), pages 391-408, November.
    3. Beegle, Kathleen & De Weerdt, Joachim & Friedman, Jed & Gibson, John, 2012. "Methods of household consumption measurement through surveys: Experimental results from Tanzania," Journal of Development Economics, Elsevier, vol. 98(1), pages 3-18.
    4. Firman Witoelar, 2013. "Risk Sharing within the Extended Family: Evidence from the Indonesia Family Life Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 62(1), pages 65-94.
    5. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, April.
    6. Lee, Myoung-jae & Kang, Changhui, 2006. "Identification for difference in differences with cross-section and panel data," Economics Letters, Elsevier, vol. 92(2), pages 270-276, August.
    7. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mano, Yukichi & Akoten, John & Yoshino, Yutaka & Sonobe, Tetsushi, 2014. "Teaching KAIZEN to small business owners: An experiment in a metalworking cluster in Nairobi," Journal of the Japanese and International Economies, Elsevier, vol. 33(C), pages 25-42.
    2. de Nicola, Francesca & Giné, Xavier, 2014. "How accurate are recall data? Evidence from coastal India," Journal of Development Economics, Elsevier, vol. 106(C), pages 52-65.
    3. Blattman, Christopher & Jamison, Julian & Koroknay-Palicz, Tricia & Rodrigues, Katherine & Sheridan, Margaret, 2016. "Measuring the measurement error: A method to qualitatively validate survey data," Journal of Development Economics, Elsevier, vol. 120(C), pages 99-112.
    4. Reitmann, Ann-Kristin & Goedhuys, Micheline & Grimm, Michael & Nillesen, Eleonora E.M., 2020. "Gender attitudes in the Arab region – The role of framing and priming effects," Journal of Economic Psychology, Elsevier, vol. 80(C).
    5. Jean-François Maystadt & Gilles Duranton, 2019. "The development push of refugees: evidence from Tanzania," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 299-334.
    6. Ivar Kolstad & Armando J. Garcia Pires & Arne Wiig, 2017. "Within-group heterogeneity and group dynamics: analyzing exit of microcredit groups in Angola," Oxford Development Studies, Taylor & Francis Journals, vol. 45(3), pages 338-351, July.
    7. Zezza, Alberto & Federighi, Giovanni & Kalilou, Amadou Adamou & Hiernaux, Pierre, 2016. "Milking the data: Measuring milk off-take in extensive livestock systems. Experimental evidence from Niger," Food Policy, Elsevier, vol. 59(C), pages 174-186.
    8. Wollburg, Philip & Tiberti, Marco & Zezza, Alberto, 2021. "Recall length and measurement error in agricultural surveys," Food Policy, Elsevier, vol. 100(C).
    9. Boulaga,Amadou Adamou Kalilou & Federighi,Giovanni & Hiernaux, Pierre & Zezza,Alberto & Boulaga,Amadou Adamou Kalilou & Federighi,Giovanni & Hiernaux, Pierre & Zezza,Alberto, 2014. "Milking the data : measuring income from milk production in extensive livestock systems -- experimental evidence from Niger," Policy Research Working Paper Series 7114, The World Bank.
    10. Kimin Kim & Myoung-jae Lee, 2019. "Difference in differences in reverse," Empirical Economics, Springer, vol. 57(3), pages 705-725, September.
    11. Olivier Sterck & Antonia Delius, 2020. "Cash Transfers and Micro-Enterprise Performance: Theory and Quasi-Experimental Evidence from Kenya," CSAE Working Paper Series 2020-09, Centre for the Study of African Economies, University of Oxford.
    12. Arthi, Vellore & Beegle, Kathleen & De Weerdt, Joachim & Palacios-López, Amparo, 2018. "Not your average job: Measuring farm labor in Tanzania," Journal of Development Economics, Elsevier, vol. 130(C), pages 160-172.
    13. Carletto, Calogero & Gourlay, Sydney & Murray, Siobhan & Zezza, Alberto, 2015. "Welcome to Fantasyland: Comparing Approaches To Land Area Measurement In Household Surveys," 2015 Conference, August 9-14, 2015, Milan, Italy 211849, International Association of Agricultural Economists.
    14. Jean-Francois Maystadt & Gilles Duranton, 2014. "The development push of refugees," Working Papers 66910685, Lancaster University Management School, Economics Department.
    15. Joachim De Weerdt & John Gibson & Kathleen Beegle, 2020. "What Can We Learn from Experimenting with Survey Methods?," Annual Review of Resource Economics, Annual Reviews, vol. 12(1), pages 431-447, October.
    16. Muhammad Kabir Salihu & Andrea Guariso, 2017. "Rainfall inequality, trust and civil conflict in Nigeria," Working Papers 205618510, Lancaster University Management School, Economics Department.
    17. Gabriele Ruiu & Giovanna Gonano, 2020. "Religious Barriers to the Diffusion of Same-sex Civil Unions in Italy," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(6), pages 1185-1203, December.
    18. Wright, Austin L. & Sonin, Konstantin & Driscoll, Jesse & Wilson, Jarnickae, 2020. "Poverty and economic dislocation reduce compliance with COVID-19 shelter-in-place protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 544-554.
    19. Guido de Blasio & Daniela Vuri, 2019. "Effects of the Joint Custody Law in Italy," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 16(3), pages 479-514, September.
    20. Graves Jennifer & McMullen Steven & Rouse Kathryn, 2018. "Teacher Turnover, Composition and Qualifications in the Year-Round School Setting," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-27, July.

    More about this item

    Keywords

    Refugees; Tanzania; Migration;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hic:wpaper:60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://hicn.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alia Aghajanian or The email address of this maintainer does not seem to be valid anymore. Please ask the person in charge to update the entry or send us the correct address or or (email available below). General contact details of provider: https://hicn.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.