The Economics of Forced Migration

This article reviews the economics literature on the impacts of forced migration. The literature is divided into two parts: impacts on forced migrants and impacts on host communities. Studies exploring the impact of forced migration due to WWII suggest that the long-term impact is often positive. The literature for developing countries suggests that there are serious consequences of forced migration for those forced to migrate. These consequences range from worse labour market outcomes to less consumption smoothing. The impact on host communities seems to be mixed and there are winners and losers. The article provides suggestions for future research.