In 2015, the United Nations High Commission for Refugees accommodated over 15 million refugees, mostly in refugee camps in developing countries. The World Food Program provided these refugees with food aid, in cash or in kind. Refugees’ impacts on host countries are controversial and little understood. This unique study analyzes the economic impacts of refugees on host-country economies within a 10-km radius of three Congolese refugee camps in Rwanda. Simulations using Monte Carlo methods reveal that cash aid to refugees creates significant positive income spillovers to host-country businesses and households. An additional adult refugee receiving cash aid increases annual real income in the local economy by $205 to $253, significantly more than the $120–$126 in aid each refugee receives. Trade between the local economy and the rest of Rwanda increases by $49 to $55. The impacts are lower for in-kind food aid, a finding relevant to development aid generally.

No abstract

Informality, measured as the share of the employed who do not have access to social security, is high in Lebanon and the Syrian Arab Republic. This paper uses new data from the 2010 Lebanon and Syria matched employer-employee surveys, which include modules that directly test for ability (Raven's progressive matrices) and selfreported personality characteristics in addition to a detailed section on job quality. The analysis of differentials in earning, self-reported attitudes toward jobs, working conditions, and self-rated satisfaction across formal and informal jobs shows that, even after controlling for measured ability and personality traits, there is a significant formality premium. Moreover, in Lebanon, informal workers are significantly more likely than formal workers to want to change jobs. These findings suggest that much of the observed informality in these two countries might not be due to individual choice but more likely to exclusion from formal markets. JEL codes: H53, H55, J23, J24, J31, J32, J42, J71, J81, K31, M51, O53