Labor Market Outcomes among Victims of Forced Displacement in Kenya

Kefa Simiyu, University of Nairobi

We analyze labor market outcomes among refugees during the COVID-19 pandemic. The analyses utilize the 2020-2022 COVID-19 Rapid Response Phone Surveys among Refugees in Kenya. In a fixed effects (FE) model, eight waves are considered alongside two sets of covariates. Findings suggest that employment, hours worked, and earnings made differed across the waves. Despite employment, hours worked, and earnings declining at the onset, these outcomes rose as the pandemic progressed. An education penalty existed such that educated female refugees were less likely to be employed and worked fewer hours compared to uneducated male counterparts. Although interventions significantly raised earnings, the effect on hours worked and employment was intervention-specific. Hours worked and employment of refugees rose significantly in unsustainable coping strategies but declined significantly in remittances, and assistance. We test for robustness using difference-in-difference estimator. We conclude that educated female refugees are heavily penalized with respect to employment and hours worked.