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The Impact of Forced Displacement on Host Communities. A Review of the Empirical Literature in Economics

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  • Verme, Paolo
  • Schuettler, Kirsten

Abstract

The paper reviews the literature that estimated the impact of forced displacement on host communities. A comparative analysis of the empirical models used in 59 studies and a meta-analysis of 972 results collected from these studies are the main contributions of the paper. Coverage extends to 19 major forced displacement crises that occurred between 1922 and 2018, high, medium and low-income host countries and different types of forced migrants. Results refer to outcomes related to employment, wages, prices and household well-being. The meta-analysis finds that most results on employment and wages are non-significant. When significant, decreases in employment and wages are more likely to occur than increases with decreases strongly associated with the short-term, middle-income countries, females, young and informal workers. Food and rent prices tend to increase in the short-term. The probability of observing a decrease in household well-being among hosts is lower than 1 in 5.

Suggested Citation

  • Verme, Paolo & Schuettler, Kirsten, 2020. "The Impact of Forced Displacement on Host Communities. A Review of the Empirical Literature in Economics," GLO Discussion Paper Series 583, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:583
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    Cited by:

    1. Schneiderheinze, Claas & Lücke, Matthias, 2020. "Socio-economic impacts of refugees on host communities in developing countries," PEGNet Policy Studies 03/2020, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW).
    2. 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).
    3. Ayenew, Ashenafi Belayneh, 2021. "Welfare Impact of Hosting Refugees in Ethiopia," EconStor Preprints 228519, ZBW - Leibniz Information Centre for Economics.
    4. Michalis Drouvelis & Bilal Malaeb & Michael Vlassopoulos & Jackline Wahba, 2019. "Cooperation in a Fragmented Society: Experimental Evidence on Syrian Refugees and Natives in Lebanon," CESifo Working Paper Series 8038, CESifo.
    5. Hai-Anh Dang & Paolo Verme, 2021. "Estimating Poverty for Refugees in Data-scarce Contexts: An Application of Cross-Survey Imputation," Working Papers 578, ECINEQ, Society for the Study of Economic Inequality.
    6. 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).
    7. Aracı, Doğu Tan & Demirci, Murat & Kirdar, Murat G., 2021. "Development Level of Hosting Areas and the Impact of Refugees on Natives' Labor Market Outcomes," IZA Discussion Papers 14267, Institute of Labor Economics (IZA).
    8. d’Errico, Marco & Mariani, Rama Dasi & Pietrelli, Rebecca & Rosati, Furio Camillo, 2021. "Refugee-host proximity and market creation in Uganda," ESA Working Papers 309466, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    9. Kuhnt, Jana, 2019. "Literature review: drivers of migration. Why do people leave their homes? Is there an easy answer? A structured overview of migratory determinants," Discussion Papers 9/2019, German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE).
    10. Jon Echevarria-Coco & Javier Gardeazabal, 2021. "A Spatial Model of Internal Displacement and Forced Migration," Journal of Conflict Resolution, Peace Science Society (International), vol. 65(2-3), pages 591-618, February.

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    More about this item

    Keywords

    Refugees; Returnees; Expellees; Escapees; Internally Displaced Persons (IDPs); Forced Migration; Forced Displacement; Host Communities; Labor Markets; Wages; Prices; Employment; Unemployment; Well-being;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J8 - Labor and Demographic Economics - - Labor Standards
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P46 - Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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