Refugees and Other Forcibly Displaced Populations

Sandra Rozo and Guy Grossman

No 11123, Policy Research Working Paper Series from The World Bank

Abstract: Forced displacement has reached unprecedented levels, with over 120 million individuals displaced globally as of 2024 due to conflict, violence, climate change, and human rights violations. These crises are increasingly protracted, characterised by low return rates, and increasingly demand a shift from hosting models solely funded through humanitarian aid to financially sustainable, medium- to long-term strategies. This review synthesises quantitative research conducted between 2010 and 2024, focusing on studies that use experimental or quasi-experimental methods to examine (1) the impacts of forced displacement on host communities and (2) the effectiveness of policies designed to support both forcibly displaced populations and their hosts. Key insights from this body of work indicate that forced displacement inflows generally exert neutral effects on native employment and wages, although vulnerable native workers—particularly those in the informal sector—may initially face challenges. Investments in inclusive social protection services that benefit both displaced populations and host communities can alleviate pressures and foster social cohesion. Additionally, cash transfers enhance immediate well-being and are most effective in the medium run when paired with initiatives that promote the economic self-reliance of forcibly displaced populations. Granting refugees the right to work has demonstrated transformative impacts on economic and well-being outcomes, while also providing a financially sustainable solution for hosting refugees over the medium to long term. Finally, addressing the mental health challenges faced by forcibly displaced populations is critical to enable them to recover their lives. This review underscores the importance of transitioning from humanitarian aid to self-reliance models, closing policy implementation gaps, and tailoring interventions to local contexts.

Date: 2025-05-19
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://documents.worldbank.org/curated/en/0993011 ... 44b-9dc0a0f81b0a.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:11123

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().