Are Refugees a Burden? Impacts of Refugee Inflows on Host's Consumption Expenditures

Abstract

We examine the impact of Syrian refugee inflows on the consumption expenditures and income of Jordanian nationals. We combine administrative data with individual panel data and exploit the fact that after the beginning of the Syrian conflict in 2011, refugees have relocated disproportionately to areas close to the three largest refugee camps. We find that higher refugee inflows lead to a redistribution of the composition of locals' consumption expenditures in favor of greater spending on housing and transportation and lower expenditures on food, education, health care, and communication. Higher housing expenditures are accompanied by a decline in housing quality for young individuals working in the informal sector.

Keywords: Refugees, Welfare, Migration

JEL Classification: D22, J61, O17