Forced Displacement, Human Capital and Occupational Choice

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Event Date

Location
Zoom

Senior Economics of Migration Seminar

Speaker: Sandra Sequeira (LSE), Giorgio Chiovelli (Universidad de Montevideo) and Elias Papaioannou (London Business School)

Abstract: 
The seminar focuses on the impact of conflict-driven displacement on investments in human capital and occupational choice, looking at the Mozambican civil war (1977-1992). We found that children displaced into urban areas were more likely to invest in education and later experience a shift toward occupations outside of agriculture. We also found that displacement to neighboring countries yields no discernible differences in education and occupational specialization. Finally, we found that children displaced into a city setting have significantly higher education than their siblings who remained elsewhere. These findings underscore how forced displacement can act as a mobility shock that breaks links with subsistence agriculture, increasing human capital accumulation and encouraging occupational shifts. However, it may come at the cost of decreased mental health and trust.

April 14, 2021 5:30pm CET

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