Long-Term Effects of Forced Migration

We study the long-term effects of human displacement using individual level panel data onforced migrants and comparable non-migrants. After World War II, Finland ceded a tenth ofits territory to the Soviet Union and resettled the entire population living in these areas in theremaining parts of the country. We find that displacement increased the long-term income ofmen, but had no effect on that of women. We attribute a large part of the effect to fastertransition from traditional (rural) to modern (urban) occupations among the displaced.