Economic Consequences of Forced Displacement

Over 42 million people worldwide have been forcibly displaced from their communities, though little is known about the impact of this movement on livelihoods. I use a panel data set and exploit a geographic discontinuity to explore the effects of displacement in Uganda. I find that displaced households experience a significant initial decrease in consumption. Two years after households returned home, displaced households still lag behind. However, households in the top quartiles of pre-displacement assets have recovered some of their consumption, though with significantly reduced education and wealth levels. There is likely little or no recovery for the poorest households.