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Job Market Outcomes of IDPs: The Case of Georgia

Author

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  • Torosyan, Karine

    () (ISET, Tbilisi State University)

  • Pignatti, Norberto

    () (ISET, Tbilisi State University)

  • Obrizan, Maksym

    () (Kyiv School of Economics)

Abstract

Internally displaced people (IDPs) constitute a serious economic, social and cultural problem for many countries, including countries in transition. Despite the importance of the problem, there are only a handful of previous studies investigating the issue of labor market outcomes of IDPs. We aim to fill this gap in the literature using 13 years of Integrated Household Surveys over 2004-2016 from Georgia, which experienced large flows of internal migrants from the early 1990s until now. Our analyses indicate that the labor market outcomes of IDPs are much worse than those of local residents. Specifically, IDPs are 3.9 to 11.2 percentage points less likely to be in the labor force, depending on the period and duration of IDP status. IDPs are also up to 11.6 percentage points more likely to be unemployed, sometimes even after 20 years of forced displacement. Finally, IDPs residing in a locality for more than 5 years receive persistently lower wages than local residents with similar characteristics, with the gap widening over time, reaching some 16 percentage points in the last period under analysis.

Suggested Citation

  • Torosyan, Karine & Pignatti, Norberto & Obrizan, Maksym, 2018. "Job Market Outcomes of IDPs: The Case of Georgia," IZA Discussion Papers 11301, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11301
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    References listed on IDEAS

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    1. Isabel Ruiz & Carlos Vargas-Silva, 2015. "The Labor Market Impacts of Forced Migration," American Economic Review, American Economic Association, vol. 105(5), pages 581-586, May.
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    3. Engel, Stefanie & Ibanez, Ana Maria, 2007. "Displacement Due to Violence in Colombia: A Household-Level Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 335-365, January.
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    5. SonjaC. Kassenboehmer & JohnP. Haisken-DeNew, 2009. "You're Fired! The Causal Negative Effect of Entry Unemployment on Life Satisfaction," Economic Journal, Royal Economic Society, vol. 119(536), pages 448-462, March.
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    7. Jahoda,Marie, 1982. "Employment and Unemployment," Cambridge Books, Cambridge University Press, number 9780521285865, March.
    8. Michael Kind & John P. Haisken-DeNew, 2012. "Unexpected Victims: How Parents' Unemployment Affects Their Children's Life Satisfaction," Melbourne Institute Working Paper Series wp2012n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Theodore Gerber & Karine Torosyan, 2013. "Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1279-1301, August.
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    11. Kondylis, Florence, 2010. "Conflict displacement and labor market outcomes in post-war Bosnia and Herzegovina," Journal of Development Economics, Elsevier, vol. 93(2), pages 235-248, November.
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    Cited by:

    1. Maksym Obrizan, 2019. "Violent conflict and unhappiness: evidence from the 2016 ‘Life in Transition' III surve," Economics Bulletin, AccessEcon, vol. 39(1), pages 192-199.
    2. Maksym Obrizan & Karine Torosyan & Norberto Pignatti, 2018. "Tobacco spending in Georgia: Machine learning approach," Working Papers 3184, Research Consulting and Development.

    More about this item

    Keywords

    conflict; internally displaced people; IDPs; labor market outcomes; transition countries;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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