The labor market and policy environments faced by urban and camp refugees are very different. Urban refugees have on average more dependents, are not eligible for emergency relief from WFP and cannot access incentive jobs that are available in refugee camps (Betts, Sterck, & Omata, 2018). On the other hand, they may have access to a wider array and potentially more productive job opportunities. In Figure 4 we split refugees into camp-based and urban refugees. Urban refugees are on average slightly more likely to be employed and work on average more hours than camp refugees in all waves. However, they are still significantly less likely employed and still work significantly less hours than their national counterparts by an average of 7 hours per week. Interestingly, we observe that despite being more likely employed and working more hours, household per capita incomes for urban refugees are comparable to camp refugees in all waves between July-September 2020 and January-March 2021.<sup>25</sup> At the same time, camp refugees are at least as likely or slightly more likely to have lost their jobs in terms of work-stoppage rates. Despite high work-stoppage rates, camp refugees are able to retain incomes possibly because of the prevalence of aiddelivery and incentive work available in camps.

For urban refugees we observe that the employment share in May-June 2021 (48 percent) increased substantially from one wave prior such that it is now 12 percentage points above the pre-pandemic share from February 2020 (36 percent). In comparison, the share of employed camp refugees is only 7 percentage points larger in May-June 2021 compared to its pre-pandemic level from February 2020 (27 percent). To understand the potential drivers of the increased employment share, a recent in-depth report on Kenyan nationals provides relevant insight. In the report we observed higher employment rates among nationals in June 2021 than before the pandemic. At the same time, the share of individuals working in more than one type of employment has doubled over the duration of the pandemic (from 7 percent to 15 percent) and more individuals reported looking for additional income generating activities as a coping mechanism (World Bank, 2021). In addition, the share of wage workers in high quality jobs declined consistently throughout 2021<sup>26</sup> and job quality was particularly worse among urban populations. These points point to the fact that individuals are seeking additional income generating activities to cover losses induced by the pandemic. The higher employment share is more reflective of a higher willing to take on more (wage) jobs, resulting in higher engagement in less-paid and less secure lower quality jobs. This effect is particularly prevalent among urban populations who cannot substitute for subsistence farming and are thus more likely engaged in wage work where job quality on average worsened through the pandemic. We expect this increased willingness to take on jobs to also apply to refugees who predominantly live in urban areas, are severely impoverished and continue to face a reduction to their food ration entitlements of up to 50 percent (WFP, 2020).

> 25 The sample of urban refugees is small, ranging from 32 observations in May-June 2020 to 175 in April-June 2021. It is possible that with larger samples and more precision we would observe significant differences between urban and camp refugees in other waves. 26 Job quality was measured by 4 dimensions: income, benefits, satisfaction, and stability. If an individual’s salary does not exceed the poverty line, the index was set to 0. For a detailed description of the indicators used for each dimension, see Annex F.5 in World Bank (2021).

17