Understanding the causes and consequences of conflicts is crucial to address poverty in developing countries. This paper investigates the microeconomic consequences of civil war on the labor market in Sri Lanka. The conflict influences labor market through the functioning of social networks and I exploit the variation in migration caused by the war to estimate the impact of networks on labor market outcomes. I use conflict intensity in the province of origin as an instrument for the size of the network at the destination and I find that the migrant’s probability of being employed is enhanced when his network is larger. |