This paper examines the impact of conflict-induced population displacement
on urban labor markets. Data from over 900 working-age individuals in Sudan
indicates that long-term urban residents in conflict areas have a higher probability
of being employed in skilled sectors relative to similar individuals in a
non-conflict city, and a lower likelihood of becoming unemployed. Recent arrivals
to the conflict city, however, are much more likely to become unemployed.
The data also show that young women entering the labor market during the
conflict are less likely to be unemployed in the conflict city. This is consistent
with a framework where war-induced population displacement from rural to urban
areas generates demand for services provided by higher-skill workers, and
increased competition for low-skill jobs. The data show that household wealth
of long term residents decreases in conflict zones. Negative wealth effects are
smaller for those more dependent upon skilled sectors.