Abstract
Although refugee return is widely promoted by host states and international organizations as a durable solution to displacement, its implications for security and postwar order remain poorly understood. In particular, little is known about how return reshapes communal relations between returnees and stayees in conflict-affected areas. This paper advances a theory of post-return violence that emphasizes the role of displacement experiences. Contrary to the common assumption that exposure to violence deepens trauma, fosters resentment, and fuels new cycles of conflict, I argue that such exposure can instead facilitate reconciliation. When both returnees and stayees have endured wartime violence, shared traumatic experiences foster empathy, promote ingroup re-categorization, and reduce tensions, thereby lowering the risk of communal violence. I test this argument with granular settlement-level data from the International Organization for Migration’s Integrated Location Assessments (2019–2022) in post-ISIS Iraq, using a shift-share instrumental variable design to address the endogeneity of refugee returns. The results provide causal evidence that shared exposure to violence decreases communal conflict in returnee settlements, and suggest that this effect is even stronger in more fractionalized communities. These findings speak to broader debates on displacement, reconciliation, and postwar peacebuilding. They show that returned refugees need not destabilize communities, but can peacefully coexist with the stayees when underpinned by shared suffering. For policymakers, the results highlight the importance of coupling material assistance with reintegration initiatives that acknowledge collective experiences of violence and strengthen community institutions to sustain peace.