Amidst Sahel's unrest: Labor market and consumption effects of Malian refugee camps in rural Niger

Abstract

Instability and ongoing conflict across the Sahel have led to conflict-induced migration and the displacement of populations across borders. As host countries face the challenges associated with refugee inflows, it becomes increasingly important to understand how these movements affect the host communities that are indirectly impacted by the conflict. By combining geocoded household panel data from Niger with administrative data on refugee settlements, I exploit spatial variation in exposure to refugee camps to assess how refugee exposure affects labor market outcomes, labor on household plots, and household consumption among households in areas hosting refugees. A higher exposure to refugees increases the likelihood that households diversify into secondary and non-farm activities, decreases family labor on plot, and improves the Food Consumption Score during the harvest season. Collectively, these results suggest that refugee inflows can generate positive local economic effects in rural settings, potentially through increased demand and humanitarian aid.