Winners and Losers Among a Refugee-Hosting Population
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.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- Baez, Javier E., 2008. "Civil Wars beyond their Borders: The Human Capital and Health Consequences of Hosting Refugees," IZA Discussion Papers 3468, Institute for the Study of Labor (IZA).
- 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.
- Beegle, Kathleen & De Weerdt, Joachim & Friedman, Jed & Gibson, John, 2010. "Methods of household consumption measurement through surveys : experimental results from Tanzania," Policy Research Working Paper Series 5501, The World Bank.
- 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.
- Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
- 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.
- 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)
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: (Alia Aghajanian)or () or () or ()
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.