The Labor Market Consequences of Hosting Refugees

46 Pages Posted: 20 Apr 2015 Last revised: 21 Jul 2015

Isabel Ruiz

University of Oxford - Harris Manchester College

Carlos Vargas-Silva

University of Oxford

Date Written: April 20, 2015

Abstract

During the 1990s the northwestern region of Tanzania experienced a large inflow of refugees. Using panel data (pre and post refugee inflow) we estimate the labor market consequences of hosting those refugees. Results are consistent with immigration affecting the allocation of natives across economic activities. Greater exposure to the refugee shock resulted in Tanzanians having a higher likelihood of working in household shambas or caring for household livestock and a lower likelihood of working outside the household as employees. The latter effect was particularly strong for Tanzanians doing casual work before the shock. This coincides with anecdotal evidence of refugees concentrating in casual waged work in Tanzania and competing directly with Tanzanians for those jobs.

Keywords: forced migration, refugees, labor markets, Tanzania

JEL Classification: F220, J610, O150

Suggested Citation

Ruiz, Isabel and Vargas-Silva, Carlos, The Labor Market Consequences of Hosting Refugees (April 20, 2015). Available at SSRN: https://ssrn.com/abstract=2596514 or http://dx.doi.org/10.2139/ssrn.2596514

Isabel Ruiz

University of Oxford - Harris Manchester College ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

HOME PAGE: http://www.economics.ox.ac.uk/index.php/staff/ruiz/

Carlos Vargas-Silva (Contact Author)

University of Oxford ( email )

58 Banbury Road
Oxford, Oxfordshire OX2 6QS
United Kingdom

HOME PAGE: http://www.carlosvargassilva.com

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