Socio-economic Impacts of Internal Displacement on Displaced and Host Households A Case Study in Gurage Zone, Ethiopia

Abstract

Internal displacement has been shown to have a detrimental effect on displaced households in the literature. However, little research has been done on how internal displacement affects host households in Ethiopia. This study attempted to examine the socio-economic impacts of internal displacement on both displaced and host households. Primary data were gathered from 613 randomly selected households. Propensity score matching method was employed to measure the socio-economic impact of internal displacement on both groups of households. Sensitivity analysis was checked using Rosenbaum bounds and the Mentel-Henzel procedures. The results revealed that internal displacement had a negative impact on socioeconomic situations of both displaced and host households. Specifically, the findings indicate that 74.63% and 23.37 % decrease in annual income of displaced and host households, respectively. In addition, unemployment rate increased by 37.17% and 4.08%, respectively, between displaced and host households due to internal displacement. Furthermore, household consumption, production, access to education, and health care were negatively and significantly affected by internal displacement. Therefore, the government should pay particular attention to return the displaced household to their community of origin and compensate for destroyed properties. In addition, the government should restore basic services provision and create work opportunities for both groups of households as a long-term solution.