Publication: Beyond Camps and Communities: The Economics of Refugee Relocation in Bangladesh
Loading...
Published
2025-09-05
ISSN
Date
2025-09-05
Editor(s)
Abstract
Relocating refugees to remote purpose-built settlements offers an alternative to hosting refugees in traditional camps or local communities. Yet, its consequences remain poorly understood. This paper evaluates the well-being and fiscal implications of relocating Rohingya refugees from the overcrowded camps of Cox’s Bazar to Bhasan Char, a newly developed remote island settlement in Bangladesh. Using data from the 2019 and 2023 waves of the Cox’s Bazar Panel Survey and the Bhasan Char Panel Survey 2022 and considering the absence of systematic selection criteria in the relocation process, the paper compares well-being outcomes between relocated and non-relocated households using both unadjusted means and propensity score matching. The paper documents two main findings. First, relocation is associated with a systematic reduction in refugee well-being, including lower food consumption (in both variety and nutritional value), higher illness and depression rates, and lower wages. Second, these outcomes occur despite significantly higher costs: per capita service delivery in Bhasan Char is approximately three times more expensive than in Cox’s Bazar. These results raise important questions about the sustainability and effectiveness of purpose-built relocation models in displacement settings
Link to Data Set
Citation
“Rozo, Sandra V.; Urbina, María José; Wieser, Christina. 2025. Beyond Camps and Communities: The Economics of Refugee Relocation in Bangladesh. Policy Research Working Paper; 11204. © World Bank. http://hdl.handle.net/10986/43681 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication The Economic Value of Weather Forecasts: A Quantitative Systematic Literature Review(Washington, DC: World Bank, 2025-09-10)This study systematically reviews the literature that quantifies the economic benefits of weather observations and forecasts in four weather-dependent economic sectors: agriculture, energy, transport, and disaster-risk management. The review covers 175 peer-reviewed journal articles and 15 policy reports. Findings show that the literature is concentrated in high-income countries and most studies use theoretical models, followed by observational and then experimental research designs. Forecast horizons studied, meteorological variables and services, and monetization techniques vary markedly by sector. Estimated benefits even within specific subsectors span several orders of magnitude and broad uncertainty ranges. An econometric meta-analysis suggests that theoretical studies and studies in richer countries tend to report significantly larger values. Barriers that hinder value realization are identified on both the provider and user sides, with inadequate relevance, weak dissemination, and limited ability to act recurring across sectors. Policy reports rely heavily on back-of-the-envelope or recursive benefit-transfer estimates, rather than on the methods and results of the peer-reviewed literature, revealing a science-to-policy gap. These findings suggest substantial socioeconomic potential of hydrometeorological services around the world, but also knowledge gaps that require more valuation studies focusing on low- and middle-income countries, addressing provider- and user-side barriers and employing rigorous empirical valuation methods to complement and validate theoretical models.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Labor Demand in the Age of Generative AI: Early Evidence from the U.S. Job Posting Data(Washington, DC: World Bank, 2025-11-18)This paper examines the causal impact of generative artificial intelligence on U.S. labor demand using online job posting data. Exploiting ChatGPT’s release in November 2022 as an exogenous shock, the paper applies difference-in-differences and event study designs to estimate the job displacement effects of generative artificial intelligence. The identification strategy compares labor demand for occupations with high versus low artificial intelligence substitution vulnerability following ChatGPT’s launch, conditioning on similar generative artificial intelligence exposure levels to isolate substitution effects from complementary uses. The analysis uses 285 million job postings collected by Lightcast from the first quarter of 2018 to the second quarter of 2025Q2. The findings show that the number of postings for occupations with above-median artificial intelligence substitution scores fell by an average of 12 percent relative to those with below-median scores. The effect increased from 6 percent in the first year after the launch to 18 percent by the third year. Losses were particularly acute for entry-level positions that require neither advanced degrees (18 percent) nor extensive experience (20 percent), as well as those in administrative support (40 percent) and professional services (30 percent). Although generative artificial intelligence generates new occupations and enhances productivity, which may increase labor demand, early evidence suggests that some occupations may be less likely to be complemented by generative artificial intelligence than others.Publication The Lasting Effects of Working while in School(Washington, DC: World Bank, 2025-08-18)This paper provides the first experimental evidence on the long-term effects of work-study programs, leveraging a randomized lottery design from a national program in Uruguay. Participation leads to a persistent 11 percent increase in formal labor earnings, observable seven years after the program. Effects are stronger for youth who participate during pivotal educational transitions and are larger for vulnerable youth and men, while remaining positive for women and non-vulnerable youth. The program is highly cost-effective, with average impacts exceeding those of job training programs and comparable to early childhood investments.Publication It’s Not (Just) the Tariffs: Rethinking Non-Tariff Measures in a Fragmented Global Economy(Washington, DC: World Bank, 2025-10-22)As tariffs have declined, non-tariff measures (NTMs) have become central to trade policy, especially in high-income countries and regulated sectors like food and green technologies. Although NTMs may serve legitimate goals, they could also sort countries and firms into or out of markets based on compliance capacity and differences in product mix. Documenting recent advances in the estimation of ad valorem equivalents (AVEs), this paper uncovers new patterns of use and exposure of NTMs. High-income countries rely more heavily on NTMs relative to tariffs, while low- and middle-income countries face steeper AVEs on their exports. Firm-level evidence shows that NTMs disproportionately affect smaller firms, leading to market exit and concentration. Poorly designed NTMs can harm productivity and welfare, while coordinated, capacity-aware use can deliver inclusive outcomes. Policy design, transparency, and diagnostics must evolve to reflect the growing role—and risks—of NTMs in a fragmented global trade landscape.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Refugees and Humanitarian Aid(Washington, DC: World Bank, 2024-08-29)This paper examines the impact of refugee camp hosting on local communities, specifically the Rohingya crisis in Cox’s Bazar, Bangladesh. It uses remote sensing measurements and panel data to compare areas and individuals at varying distances before and after the Rohingya arrived. The results highlight the complex dynamics of areas that host displaced populations. The paper finds that when the proximity of a grid to the refugee camps increases by 30 km (18.6 miles), night light density rises by 1.7 percent and deforestation expands by 0.02 percent. Land use results align with these findings, showing a decline in dense-open forest and an increase in land covered by grass and crops. The analysis of individual-level data suggests that the Rohingya’s presence manifests in higher job formality, better access to aid, and more food consumption—all largely attributable to the activities of humanitarian organizations. However, their presence is also associated with heightened safety concerns and a higher prevalence of viral diseases such as diarrhea, fever, and cough.Publication Impacts of Extremist Ideologies on Refugees' Integration(World Bank, Washington, DC, 2023-11-28)Abstract amended in January 2024: This paper examines the effect of exposure to extremist ideologies in the home country on the subsequent integration of refugees in host countries. For this purpose, it combines a rich census of Afghan refugees living in Tajikistan in 2023, following the Taliban’s takeover in Afghanistan, with uniquely scraped district-yearly data on the territories controlled by the Taliban, U.S. allies, and contested territories between the two factions between 2017 and 2021. The empirical strategy compares the integration outcomes of refugees who experienced varying exposure to extremism generated by the exogenous and sudden dramatic shift in Taliban’s territorial control in their province of birth between 2017 and 2021. Findings suggest that refugees who were born in provinces with increased Taliban territorial control between 2017 and 2021, despite having comparable pre-migration characteristics to refugees born elsewhere in Afghanistan, are less integrated into their Tajik host communities than the other refugees. These refugees also show lower educational levels and more mental health problems.Publication Host Environments and Welfare of In-Camp Refugees(Washington, DC: World Bank, 2025-04-30)This paper examines welfare disparities between in-camp refugees and host com- munities in Ethiopia, using data from the 2023 Socio-Economic Survey of Refugees in Ethiopia. The analysis reveals significant welfare gaps between in-camp refugees and hosts even after accounting for various other baseline socioeconomic char- acteristics: in-camp refugees exhibit 60 percent lower consumption per capita and poverty rates that are 40 percentage points higher compared to host communities. These disparities are also associated with limited employment opportunities and dependence on humanitarian aid among in-camp refugees. The study examines the relationship between host community characteristics and refugee welfare, revealing that more favorable socioeconomic environments benefit refugees, even when labor market outcomes are constrained by legal and structural barriers. Furthermore, the paper explores how employment outside camps may be linked to the welfare of in-camp refugees, as well as the reasons behind their pursuit of such opportunities despite restrictive policies. It finds that refugees working outside camps often originate from poorer households but report a greater sense of autonomy and control over their lives. These findings highlight the importance of economic inclusion as a pathway to self-reliance for in-camp refugees and emphasize the need to remove barriers to formal employment opportunities outside camps to improve their welfare.Publication Least Protected, Most Affected(World Bank, Washington, DC, 2023-02)How can regularization programs improve forced migrants’ resilience to shocks This paper leverages panel data collected during the COVID-19 pandemic to assess whether Venezuelan forced migrants who were eligible for a regularization program in Colombia were more resilient and less affected by the pandemic than similar but non-eligible forced migrants. The results indicate that access to the program promoted better health access for eligible migrants, facilitating adherence to prevention guidelines and increasing detection rates. Additionally, eligible migrants had better housing and labor conditions, relative to non-eligible migrants.Publication Thriving beyond Borders? Understanding Refugee Children’s Life Outcomes(Washington, DC: World Bank, 2024-05-07)By 2023, more than 108 million people were forcibly displaced worldwide, with children under 18 constituting 45 percent. This study examines the human development gaps between forcibly displaced migrant and host children and adolescents, focusing on cognitive and socioemotional skills and physical and mental health. The study also explores how access to services and regularization programs are correlated with these disparities using a unique and comprehensive longitudinal data set of around 2,500 Venezuelan migrant and Colombian host children and adolescents, ages 5 to 17 and living in Medellín, Colombia. The findings reveal significant developmental delays among migrant children in physical and cognitive development, but interestingly, no significant differences in socioemotional and mental health outcomes. The research underscores how the availability of public services and engagement in regularization programs are crucial for mitigating these developmental gaps.
Users also downloaded
Showing related downloaded files
Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication Quantitative Analysis of Road Transport Agreements (QuARTA)(Washington, DC: World Bank, 2013-04-13)Road freight transport is indispensable to international economic cooperation and foreign trade. Across all continents, it is commonly used for short and medium distances and in long distance haulage when minimizing time is important. In all instances governments play a critical role in ensuring the competitive advantage of private sector operators. Countries often have many opportunities to minimize the physical or administrative barriers that increase costs, take measures to enhance the attractiveness and competitiveness of road transport, or generally nurture the integral role of international road freight transport in the global trade logistics industry. Road freight transport is critical to domestic and international trade. It is the dominant mode of transport for overland movement of trade traffic, carrying more than 80 percent of traffic in most regions. Generally, nearly all trade traffic is carried by road at some point. Therefore, the cost and quality of road transport services is of critical importance to trade competitiveness of countries and regions within countries. In fact, road transport is fundamental to modern international division of labor and supply-chain management.Publication Poverty, Prosperity, and Planet Report 2024(Washington, DC: World Bank, 2024-10-15)The Poverty, Prosperity, and Planet Report 2024 is the latest edition of the series formerly known as Poverty and Shared Prosperity. The report emphasizes that reducing poverty and increasing shared prosperity must be achieved in ways that do not come at unacceptably high costs to the environment. The current “polycrisis”—where the multiple crises of slow economic growth, increased fragility, climate risks, and heightened uncertainty have come together at the same time—makes national development strategies and international cooperation difficult. Offering the first post-Coronavirus (COVID)-19 pandemic assessment of global progress on this interlinked agenda, the report finds that global poverty reduction has resumed but at a pace slower than before the COVID-19 crisis. Nearly 700 million people worldwide live in extreme poverty with less than US$2.15 per person per day. Progress has essentially plateaued amid lower economic growth and the impacts of COVID-19 and other crises. Today, extreme poverty is concentrated mostly in Sub-Saharan Africa and fragile settings. At a higher standard more typical of upper-middle-income countries—US$6.85 per person per day—almost one-half of the world is living in poverty. The report also provides evidence that the number of countries that have high levels of income inequality has declined considerably during the past two decades, but the pace of improvements in shared prosperity has slowed, and that inequality remains high in Latin America and the Caribbean and Sub-Saharan Africa. Worldwide, people’s incomes today would need to increase fivefold on average to reach a minimum prosperity threshold of US$25 per person per day. Where there has been progress in poverty reduction and shared prosperity, there is evidence of an increasing ability of countries to manage natural hazards, but climate risks are significantly higher in the poorest settings. Nearly one in five people globally is at risk of experiencing welfare losses due to an extreme weather event from which they will struggle to recover. The interconnected issues of climate change and poverty call for a united and inclusive effort from the global community. Development cooperation stakeholders—from governments, nongovernmental organizations, and the private sector to communities and citizens acting locally in every corner of the globe—hold pivotal roles in promoting fair and sustainable transitions. By emphasizing strategies that yield multiple benefits and diligently monitoring and addressing trade-offs, we can strive toward a future that is prosperous, equitable, and resilient.Publication India and the WTO(Washington, DC: World Bank and Oxford University Press, 2003)India's trade policy establishment is perceived to be somewhat wary of multilateral engagement, even though India is implementing substantial economic, and trade policy reforms. Some essays in this well-researched volume may throw light on this paradox. More important, the essays take a hard look at India's interests, and concerns with respect to international trade. They suggest ways that India could deploy its domestic reform agenda in the Doha Round negotiations, to secure concessions from its trading partners, while using multilateral engagement to reinforce the domestic reform process, and enhance the process' credibility. The book should prove of considerable value to policymakers, market participants, and other stakeholders.