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Labor market integration of refugees: RCT evidence from an early intervention program in Sweden

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  • Dahlberg, Matz
  • Egebark, Johan
  • Vikman, Ulrika
  • Özcan, Gülay

Abstract

This study uses a randomized controlled trial to evaluate a new program for increased labor market integration of refugees. The new program starts shortly after the residence permit is granted and uses three main components: early and intensive language training, work practice with supervisors, and job search assistance performed by professional caseworkers. The immediate and intensive assistance contrasts previous integration policies which typically constitute low-intensive help over long periods of time. We find large positive effects on employment of the program, with magnitudes corresponding to around 15 percentage points. A mediation analysis shows that 7–8 percent of the impact of the program seems to be explained by increases in documented language skills. Cost estimates suggest that the new policy is less expensive than earlier labor market programs.

Suggested Citation

  • Dahlberg, Matz & Egebark, Johan & Vikman, Ulrika & Özcan, Gülay, 2024. "Labor market integration of refugees: RCT evidence from an early intervention program in Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 614-630.
    • Handle: RePEc:eee:jeborg:v:217:y:2024:i:c:p:614-630
    DOI: 10.1016/j.jebo.2023.11.026
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    References listed on IDEAS

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    1. Courtney Brell & Christian Dustmann & Ian Preston, 2020. "The Labor Market Integration of Refugee Migrants in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 94-121, Winter.
    2. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2021. "Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2803-2854.
    3. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(91), pages 497-550.
    4. Kalena E. Cortes, 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 465-480, May.
    5. Battisti, Michele & Giesing, Yvonne & Laurentsyeva, Nadzeya, 2019. "Can job search assistance improve the labour market integration of refugees? Evidence from a field experiment," Labour Economics, Elsevier, vol. 61(C).
    6. Martén, Linna & Hainmueller, Jens & Hangartner, Dominik, 2019. "Ethnic networks can foster the economic integration of refugees," LSE Research Online Documents on Economics 101385, London School of Economics and Political Science, LSE Library.
    7. Isabel Ruiz & Carlos Vargas-Silva, 2018. "Differences in labour market outcomes between natives, refugees and other migrants in the UK," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 855-885.
    8. Cortes, Kalena E., 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," IZA Discussion Papers 1063, Institute of Labor Economics (IZA).
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    Cited by:

    1. Gathmann, Christina & Garbers, Julio, 2023. "Citizenship and integration," Labour Economics, Elsevier, vol. 82(C).

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    More about this item

    Keywords

    Refugee immigration; Integration; Randomized experiment; Labor market program;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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