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How Do Shared Experiences of Economic Shocks Impact Refugees and Host Communities ? Evidence fromAfghan Refugees in Iran

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  • Hoseini,Mohammad
  • Dideh,Mahsa Jahan

Abstract

Using representative survey data including Iranians and Afghan refugees in Iran in 2011–2019,this paper explores the unequal impact of macroeconomic fluctuations due to Iran’s nuclear dispute on Afghanrefugees and host communities. The paper finds that economic shock increases refugee’s exit and disproportionatelyreduces their consumption expenditure and aid received from the host community. In addition, bad and good economiccycles create asymmetric impacts. While negative shocks affect the economic outcomes of two communitieshomogenously, it hurts social cohesion between them. In contrast, economic recovery benefits refugees relativelymore in terms of consumption and income, but the impact on social cohesion measures is insignificant. The findings alsosuggest that in turbulent economic times, both inter-community and intra-community inequalities go up.

Suggested Citation

  • Hoseini,Mohammad & Dideh,Mahsa Jahan, 2022. "How Do Shared Experiences of Economic Shocks Impact Refugees and Host Communities ? Evidence fromAfghan Refugees in Iran," Policy Research Working Paper Series 9915, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9915
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