Refugees Labor Market Integration in Kenya

Abstract

We analyze labor market outcomes among refugees in Kenya during the COVID-19 pandemic. The analyses are based on eight waves of the COVID-19 Rapid Response Phone Surveys dataset. We employ static panel regression, and test for robustness of the results in a staggered difference-in-difference regression. Findings suggest that employment rate, hours worked, and labor income differed across the waves. Employment rate rose in the last four waves relative to the first four waves of the pandemic. Average hours worked declined relative to the level at the onset of the pandemic. Whereas gender insignificantly affected employment rate, females worked fewer hours compared to males. The higher the educational attainment, the likelier the refugee was employed. College graduates earned higher incomes compared to refugees without formal education. Males and females had similar labor market outcomes for the same level of education. In terms of coping actions, adopters were less likely to be employed in waves 5-8, worked fewer hours, and had lower labor incomes compared to non-adopters. In line with the findings, we recommend, among other things, the implementation of job interventions that target refugees, and proper targeting of social protection and education programs to incentivize work, and raise refugees’ human capital.