Refugees and Other Forcibly Displaced Populations

Forced displacement has reached unprecedented levels, with more than 120 million individuals displaced globally as of 2024 due to conflict, violence, climate change, and human rights violations. These crises are increasingly protracted, characterized by low return rates, and demand a shift from hosting models solely funded through humanitarian aid to financially sustainable, medium- to long-term strategies. This VoxDevLit synthesizes quantitative research conducted between 2010 and 2024, focusing on studies that use experimental or quasi-experimental methods to examine (1) the impacts of forced displacement on host communities and (2) the effectiveness of policies designed to support both forcibly displaced populations and their hosts. Key insights from this body of work indicate that forced displacement inflows generally exert neutral effects on native employment and wages, although vulnerable native workers—particularly those in the informal sector—may initially face challenges. Investments in inclusive social protection services that benefit both displaced populations and host communities can alleviate pressures and foster social cohesion. Additionally, cash transfers enhance immediate well-being and are most effective in the medium run when paired with initiatives that promote the economic self-reliance of forcibly displaced populations. Granting refugees the right to work has demonstrated transformative impacts on economic and well-being outcomes, while also providing a financially sustainable solution for hosting refugees over the medium to long term. Finally, addressing the mental health challenges faced by forcibly displaced populations is critical to enable them to recover their lives. This review underscores the importance of transitioning from humanitarian aid to self-reliance models, closing policy implementation gaps, and tailoring interventions to local contexts.