Is Conflict-Induced Migration Good for Business? Impacts of Internal Displacement in Colombia
44 Pages Posted: 8 Aug 2016 Last revised: 24 May 2018
Date Written: August 5, 2016
This article examines the effects of inflows of internally displaced persons (IDP) due to conflict on businesses decisions. We exploit the fact that IDP migrate disproportionately to municipalities where individuals from their same origin locations settled before the conflict intensified. We find that inflows of IDP induce positive effects on the extensive and intensive margin of production, investment, and employment, but have no effects on wages of formal firms. Our results in the formal sector are likely driven by the positive supply and demand shock in the labor markets.
Keywords: Migration, Firms, Conflict.
JEL Classification: D22, J61, O17
Suggested Citation: Suggested Citation