Understanding the Dynamics of Refugee Impact on Employment: Evidence from Northern Uganda

Abstract

Uganda hosts the largest refugee population on the African continent and the third highest worldwide. The country also has one of the world's most progressive refugee policies. Refugees are allowed to work and operate businesses anywhere in the country, which is uncommon in other African countries and beyond. Despite the large refugee population, their impact on employment and the associated dynamics remains poorly understood. This paper explores the impact of the presence of the refugee population on local employment opportunities and how it is connected to refugees’ sociocultural and livelihoods background and local refugee policies. Drawing on in-depth interviews with local hosts, government officials, and refugee agencies, we show that hosting refugees enhances opportunities and competition for jobs. We argue that refugees’ presence mainly affects unskilled locals in sectors that align with refugees’ livelihood backgrounds. The locals in distant sectors and the highly educated and experienced locals face less competition in employment. Moreover, refugees’ complementary livelihoods have the potential to minimize refugee-host competition for jobs.