THE HOUSEHOLD LEVEL ECONOMIC IMPACTS OF INTERNAL DISPLACEMENT: IN CASE OF SNNPR GURAGE ZONE MESKAN AND MAREKO DISTRICTS

Abstract

This study investigates the ex-post impact of internal displacement on household economy in case of SNNPR Guraghe Zone Meskan and Mareko districts. Moreover the study has assessed the economic performance of displaced household due to displacement phenomenon. For quantitative analysis both displaced and host community respondents were drawn and cross sectional survey data were collected from 613 households in study area. Propensity score matching method was employed to analyze the impact of the internal displacement. This method was checked for covariate balancing with a standardized bias, t-ratio, and joint significance level tests. Furthermore, sensitivity analysis of the estimated displacement effect to unobserved selection bias was checked using the Rosenbaum bounds and Mentel-henzel procedure and estimate spillover effect. The Results revealed that displacement phenomena are a significant negative impact on displaced household and spillover effect on host community economic performance. The findings indicates that 74.63 percent negative impact of annual income of internally displaced household is seen at a 5 percent significance level. Similarly, for other outcome variable such as household consumption, wage, production, access to education, and access to health care are negative and unemployment are positive and significant effects. The sensitivity analysis also shows that the impact result estimates are insensitive to unobserved selection bias. Finally the study recommends, government to create urgent cure to return the displaced household into the community of origin and to compensate for destruct property specially the cost of basic needs and government to create work opportunity to displaced household with in displaced area as well as return area are possible resolution.