On the Relationship between Violent Conflict and Wages in Colombia

We analyse how forced displacements caused by violent conflict are related to the wages of workers in Colombia. Using data from the Quality of Life Survey (2011-2014), we analyse the differences in wages between those forced by violence to move to other regions, and those who moved for other reasons. We apply Propensity Score Matching techniques to compare workers from the two groups, finding that forced displacement is related to decreases of between 10 and 29 per cent in the wages of males, and between 18 and 37 per cent in the wages of females, relative to their counterparts. Thus, forced displacements are related to poorer labour market outcomes in terms of wages.