and significant household wealth effect (measured in terms of household assets) for rural households living close to refugee camps and negative wealth effects for households in urban areas.

Thanks to the World Bank Kagera Health and Development panel Survey (KHDS) a number of studies were able to assess the impact of these refugees on host communities focusing mainly on household wellbeing and labor market outcomes. Maystadt and Duranton (2018) find that all types of local workers gained from the refugee presence, although the positive effects are weaker for agricultural workers and the selfemployed in non-agricultural activities. They find a positive and significant effect on household consumption in 9 of the 16 models’ specifications they propose with the rest of the results being all positive and non-significant. Maystadt and Verwimp (2014) use six different specifications of a similar model and find four of these specifications with a positive and significant effect on consumption with the remaining two specifications being positive and non-significant. They also show a differentiated impact between agricultural laborers and self-employed with the former suffering from high prices and competition on jobs and the latter benefitting from higher prices and cheap labor. Overall, doubling the refugee presence is found to increase per adult equivalent consumption of host households by 6-8 percent. The effect is also positive but lower (2-3 percent) for agricultural workers and self-employed in non-agricultural activities.

Using the same data, Ruiz and Vargas-Silva (2016) find that the forced migration shock led to an increase in the likelihood of Tanzanians working outside the household as caretakers and a lower likelihood of working outside the household as employees. This is particularly true for agricultural employees suggesting a certain substitution effect between locals and refugees. Ruiz and Vargas-Silva (2015) complement these results by finding that the general impact on employees is negative and significant but the impact on professionals and government employees is positive and significant. Looking closer at the relative differential impacts by gender and skill-level, Ruiz and Vargas-Silva (2017) find that, on average, the refugee influx led to women being less likely to engage in employment outside the household and to work fewer hours outside the household relative to men. The results seem to be driven by those of 30 years of age or younger. Women who were literate and had basic math skills, however, were more likely to engage in outside employment. The authors suggest that the channel for this impact is that the refugee influx increased the availability of cheap domestic workers.

Overall, findings for the Kagera region of Tanzania show that the employment effects tend to be positive for formal high skilled workers and negative for informal unskilled workers. Unlike other studies on highand middle-income countries these studies also looked at household well-being and generally find a positive impact, particularly for self-employed and residents close to camps.

Refugees in Kenya (Turkana) The Kakuma refugee camp in Kenya was initially established in 1991 to host refugee children fleeing Somalia. Its population grew steadily over the years due to conflict in neighboring countries and by 2016 the camp hosted more than 180,000 refugees, one of the largest refugee camps that ever existed. One study (Alix-Garcia et al., 2018) focused on the impact of the Kakuma refugee camp on neighboring communities using night lights as a measure of economic activity and distance from the camp as identification strategy. The study finds that the Kakuma refugee camp increases economic activity of neighboring villages. A linear ∼ DD estimation finds that a one percent increase in the distance to the Kakuma refugee camp ( 1.2 km) at ∼ the mean level of refugee inflows ( 69,000 refugees) results in a 1.8 percent reduction in the nighttime lights index. For the sample of villages with a population of 5,000 or more in 1989, a one percent increase in the distance to Kakuma at the mean level of refugee inflows is associated with a 2.3 percent reduction in the nighttime lights index. Using a Tobit specification, the authors find that a 10% increase in distance from Kakuma (12 km) at the average population of refugees corresponds to a 3.3 to 4.2 percentage point reduction in the probability of observing any nighttime lights.

In essence, the closer a village is to the refugee camp, the higher is the nighttime luminosity. The authors are also able to transform these estimates into the impact on household consumption. If a 10% increase in 60