Conflict-induced displacement and labour market outcomes

This study uses a longitudinal data source to investigate the effects of conflict-induced displacement on labour market outcomes for men and women aged 18-64 in post-war Bosnia and Herzegovina. We argue that the informal nature of the labour market makes it harder for the displaced to participate in the labour force, as refugees are not part of an informal network. We offer a measure of the impact of displacement on labour market outcome, and test for assimilation of the displaced into the labour-market over-time. Our findings suggest that the displaced are, upon return, and on average at time of data collection, faring worse than their stayer counterparts. Although the evidence suggests that assimilation of the displaced in the labour market occurs over-time, some groups still struggle to find work, and only transit from inactivity into unemployment.