Policy Study

Socio-economic impacts of refugees on host communities in developing countries

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Excerpt from the introduction

The overarching objective of this study is to review existing research, both theoretical and empirical, on the impact of refugees on residents’ livelihoods in host communities in developing countries. We particularly emphasize African experiences. We put special empha-sis on the economic consequences of the integration of refugees into local labor and goods markets (Section 2). To a large extent, these effects depend on individual characteristics of residents and refugees (including factor endowments, type of employment, and education). Therefore, we discuss not only the aggregate impact at the community level, but also conduct a disaggregated analysis and highlight the heterogeneous outcomes across different groups. We seek to identify groups that are particularly vulnerable, which will help policy makers to anticipate and mitigate possible negative effects through targeted interventions.