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Job Market Outcomes of IDPs: The Case of Georgia

Author

Listed:
  • 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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    Cited by:

    1. Maksym Obrizan, 2022. "Poverty, Unemployment and Displacement in Ukraine: three months into the war," Papers 2211.05628, arXiv.org.
    2. 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.
    3. Kudlyak, Marianna & Anastasia, Giacomo & Boeri, Tito & Zholud, Oleksandr, 2022. "The Labor Market in Ukraine: Rebuild Better," CEPR Discussion Papers 17769, C.E.P.R. Discussion Papers.
    4. Maksym Obrizan & Karine Torosyan & Norberto Pignatti, 2018. "Tobacco spending in Georgia: Machine learning approach," Working Papers 3184, Research Consulting and Development.

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    More about this item

    Keywords

    conflict; internally displaced people; IDPs; labor market outcomes; transition countries;
    All these keywords.

    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 - Political Economy and Comparative Economic Systems - - Socialist 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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