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The Impact of Syrian Refugees on the Labor Market in Neighboring Countries: Empirical Evidence from Jordan

Author

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  • Fakih, Ali

    (Lebanese American University)

  • Ibrahim, May

    (World Bank)

Abstract

This paper analyzes time-sensitive data on a humanitarian crisis in the Middle East. It aims to assess the impact of the steep influx of Syrian refugees into Jordan on the country's labor market since the onset of the conflict in Syria (March 2011). As of August 2014, nearly 3 million registered Syrians have sought refuge in neighboring countries (Lebanon, Jordan, Iraq, and Turkey), according to the United Nations High Commissioner for Refugees (UNHCR). Jordan and Lebanon are hosting the majority of them. This paper utilizes data regarding unemployment rates, employment rates, labor force participation, the number of refugees, and economic activity at the level of governorates. The Vector Autoregressive (VAR) methodology is used to examine time series data from the most affected governorates in Jordan. The empirical results of Granger causality tests and impulse response functions show that there is no relationship between the influx of Syrian refugees and the Jordanian labor market. Our results are verified through a set of robustness checks.

Suggested Citation

  • Fakih, Ali & Ibrahim, May, 2016. "The Impact of Syrian Refugees on the Labor Market in Neighboring Countries: Empirical Evidence from Jordan," IZA Discussion Papers 9667, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9667
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    Cited by:

    1. Anda David & Mohamed Ali Marouani & Charbel Nahas & Björn Nilsson, 2020. "The economics of the Syrian refugee crisis in neighbouring countries: The case of Lebanon," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(1), pages 89-109, January.
    2. Fallah, Belal & Krafft, Caroline & Wahba, Jackline, 2019. "The impact of refugees on employment and wages in Jordan," Journal of Development Economics, Elsevier, vol. 139(C), pages 203-216.
    3. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2020. "Two and a half million Syrian refugees, tasks and capital intensity," Journal of Development Economics, Elsevier, vol. 145(C).
    4. Yusuf Emre Akgündüz & Marcel van den Berg & Wolter Hassink, 2018. "The Impact of the Syrian Refugee Crisis on Firm Entry and Performance in Turkey," World Bank Economic Review, World Bank Group, vol. 32(1), pages 19-40.
    5. Evren Ceritoglu & H. Burcu Gurcihan Yunculer & Huzeyfe Torun & Semih Tumen, 2017. "The impact of Syrian refugees on natives’ labor market outcomes in Turkey: evidence from a quasi-experimental design," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-28, December.
    6. Oğuz Esen & Ayla Oğuş Binatlı, 2017. "The Impact of Syrian Refugees on the Turkish Economy: Regional Labour Market Effects," Social Sciences, MDPI, Open Access Journal, vol. 6(4), pages 1-12, October.
    7. Salah Abosedra & Ali Fakih & Nathir Haimoun, 2020. "Ethnic Divisions And The Onset Of Civil Wars In Syria," Working Papers 1384, Economic Research Forum, revised 20 Mar 2020.
    8. Björn Nilsson & Racha Ramadan, 2020. "Migration and Inequalities Around the Mediterranean Sea," Working Papers 1390, Economic Research Forum, revised 20 Apr 2020.
    9. Laura Gauer Bermudez & Katharine Williamson & Lindsay Stark, 2018. "Setting global research priorities for child protection in humanitarian action: Results from an adapted CHNRI exercise," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-15, August.
    10. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    11. Anda David & Mohamed Ali Marouani & Charbel Nahas & Björn Nilsson, 2018. "The economics of the Syrian refugee crisis in neighboring countries," Working Papers 20180001, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    12. Ahmad AlShwawra, 2021. "Syrian Refugees’ Integration Policies in Jordanian Labor Market," Sustainability, MDPI, Open Access Journal, vol. 13(13), pages 1-16, June.
    13. Tumen, Semih, 2018. "The Impact of Low-Skill Refugees on Youth Education," IZA Discussion Papers 11869, Institute of Labor Economics (IZA).
    14. Rozo, Sandra V. & Sviatschi, Micaela, 2021. "Is a refugee crisis a housing crisis? Only if housing supply is unresponsive," Journal of Development Economics, Elsevier, vol. 148(C).
    15. Ghassan Dibeh & Ali Fakih & Walid Marrouch, 2020. "Tourism–growth nexus under duress: Lebanon during the Syrian crisis," Tourism Economics, , vol. 26(3), pages 353-370, May.

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    More about this item

    Keywords

    forced refugees; host country; labor market; VAR model;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East

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