The Economic Effects of Refugee Return and Policy Implications
The recent surge in the number of forcibly displaced who cross international borders in search of protection has prompted interest in evaluating policies that achieve the possible "end points" of the phenomenon. As envisaged by United Nat...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/790661530120783999/The-economic-effects-of-refugee-return-and-policy-implications http://hdl.handle.net/10986/29950 |
| Summary: | The recent surge in the number of
forcibly displaced who cross international borders in search
of protection has prompted interest in evaluating policies
that achieve the possible "end points" of the
phenomenon. As envisaged by United Nations High Commissioner
for Refugees (UNHCR), these are the integration in the
country of destination, relocation in a third country, and
return to the country of origin. The focus of this paper is
on the third aspect, namely the appropriate conduct of
return policy viewed from the perspective of the host
country. More specifically, the main question is whether it
is in the economic self-interest of host countries to return
forcibly displaced persons. In addressing the question, four
ancillary issues are to be addressed: (i) the macroeconomic
impact of refugees and of their return; (ii) the labor
market impact of refugees and of their return, (iii) the
fiscal impact of refugees and of their return; and (iv) how
return policy should be formulated and executed. The
available evidence and analyses allow this paper's main
conclusion, namely that the costs of hosting asylum seekers
and refugees are front-loaded, while the benefits accruing
from their integration into the labor market and the host
economy typically take years to materialize. It follows that
from the economic perspective their return after a short
stay may represent a costlier option than continuing to
invest in their successful integration. Countries with a
flexible labor market, strong investment climate, and a
welcoming attitude to immigrants tend to see the economic
benefits of refugee inflows materialize faster. |
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