Is Conflict-Induced Migration Good for Business? Impacts of Internal Displacement in Colombia

44 Pages Posted: 8 Aug 2016 Last revised: 24 May 2018

Sandra Rozo

University of Southern California - Marshall School of Business; University of Southern California - Schaeffer Center for Health Policy and Economics

Hernan Winkler

World Bank

Date Written: August 5, 2016

Abstract

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

Rozo, Sandra and Winkler, Hernan, Is Conflict-Induced Migration Good for Business? Impacts of Internal Displacement in Colombia (August 5, 2016). Available at SSRN: https://ssrn.com/abstract=2819225 or http://dx.doi.org/10.2139/ssrn.2819225

Sandra Rozo (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

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

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

Hernan Winkler

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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