Labor Market Outcomes of IDPs: the Case of Georgia

Internally displaced people (IDPs) constitute a serious economic, social and cultural problem for many countries, including countries in transition. Despite the importance of the problem, there are only a handful of previous studies investigating the issue of labour market outcomes for IDPs. Moreover, the impact of protracted displacement has not been addressed in academic work at all. We aim to fill this gap in the literature using 13 years (2004–2016) of Integrated Household Surveys from Georgia, which has experienced a large flow of internal migrants from the early 1990s until now. Our analyses indicate that the labour market outcomes for IDPs are much worse than those for local residents. Specifically, IDPs are 3.9–11.2 percentage points less likely to be in the labour force, depending on the period and duration of IDP status. IDPs are also up to 11.6 percentage points more likely to be unemployed, even after 20 years of forced displacement. Finally, IDPs residing in a locality for more than five years receive persistently lower wages than local residents with similar characteristics, with the gap widening over time, reaching some 11% in the last period under analysis.