IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/12718.html
   My bibliography  Save this paper

(The Struggle for) Refugee Integration into the Labour Market: Evidence from Europe

Author

Listed:
  • Fasani, Francesco
  • Frattini, Tommaso
  • Minale, Luigi

Abstract

In this paper, we use repeated cross-sectional survey data to study the labour market performance of refugees across several EU countries and over time. In the first part, we document that labour market outcomes for refugees are consistently worse than those for other comparable migrants. The gap remains sizeable even after controlling for individual characteristics as well as for unobservables using a rich set of fixed effects and interactions between area of origin, entry cohort and destination country. Refugees are 11.6 percent less likely to have a job and 22.1 percent more likely to be unemployed than migrants with similar characteristics. Moreover, their income, occupational quality and labour market participation are also relatively weaker. This gap persists until about 10 years after immigration. In the second part, we assess the role of asylum policies in explaining the observed refugee gap. We conduct a difference-in-differences analysis that exploits the differential timing of dispersal policy enactment across European countries: we show that refugee cohorts exposed to these polices have persistently worse labour market outcomes. Further, we find that entry cohorts admitted when refugee status recognition rates are relatively high integrate better into the host country labour market.

Suggested Citation

  • Fasani, Francesco & Frattini, Tommaso & Minale, Luigi, 2018. "(The Struggle for) Refugee Integration into the Labour Market: Evidence from Europe," CEPR Discussion Papers 12718, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12718
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12718
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    2. Timothy J. Hatton, 2016. "Refugees, Asylum Seekers, and Policy in OECD Countries," American Economic Review, American Economic Association, vol. 106(5), pages 441-445, May.
    3. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2004. "Settlement policies and the economic success of immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 133-155, February.
    4. Jonah B. Gelbach, 2016. "When Do Covariates Matter? And Which Ones, and How Much?," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 509-543.
    5. Kahn, Lisa B., 2010. "The long-term labor market consequences of graduating from college in a bad economy," Labour Economics, Elsevier, vol. 17(2), pages 303-316, April.
    6. Salehyan, Idean & Gleditsch, Kristian Skrede, 2006. "Refugees and the Spread of Civil War," International Organization, Cambridge University Press, vol. 60(2), pages 335-366, April.
    7. Jesús Fernández-Huertas Moraga & Hillel Rapoport, 2015. "Tradable Refugee-admission Quotas and EU Asylum Policy," CESifo Economic Studies, CESifo, vol. 61(3-4), pages 638-672.
    8. Laura Jaitman & Stephen Machin, 2013. "Crime and immigration: new evidence from England and Wales," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    9. Mr. Helge Berger & Mr. Shekhar Aiyar & Petia Topalova & Nicoletta Batini & Mr. Sebastian Sosa & Ms. Bergljot B Barkbu & Ms. Huidan Huidan Lin & Mr. Christian H Ebeke & Ms. Linda Kaltani & Allan Diziol, 2016. "The Refugee Surge in Europe: Economic Challenges," IMF Staff Discussion Notes 2016/002, International Monetary Fund.
    10. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2017. "Immigrant Labor Market Integration across Admission Classes," IZA Discussion Papers 10513, Institute of Labor Economics (IZA).
    11. Yuji Genda & Ayako Kondo & Souichi Ohta, 2010. "Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    12. George J. Borjas, 2021. "Ethnicity, Neighborhoods, and Human-Capital Externalities," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 7, pages 135-160, World Scientific Publishing Co. Pte. Ltd..
    13. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    14. Anna Damm & Michael Rosholm, 2010. "Employment effects of spatial dispersal of refugees," Review of Economics of the Household, Springer, vol. 8(1), pages 105-146, March.
    15. Jesús Fernández-Huertas Moraga & Hillel Rapoport, 2015. "Tradable Refugee-Admission Quotas, Matching and the New European Agenda for Migration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(2), pages 50-56, 08.
    16. Hatton, Timothy J. & Moloney, Joe, 2015. "Applications for Asylum in the Developed World: Modelling Asylum Claims by Origin and Destination," CEPR Discussion Papers 10678, C.E.P.R. Discussion Papers.
    17. Giovanni Facchini & Oliver Lorz & Gerald Willmann, 2006. "Asylum seekers in Europe: the warm glow of a hot potato," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 411-430, June.
    18. Barry R. Chiswick & Yinon Cohen & Tzippi Zach, 1997. "The Labor Market Status of Immigrants: Effects of the Unemployment Rate at Arrival and Duration of Residence," ILR Review, Cornell University, ILR School, vol. 50(2), pages 289-303, January.
    19. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 497-550.
    20. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages 585-606, November.
    21. 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.
    22. Michael A. Clemens & Lant Pritchett, 2008. "Income per Natural: Measuring Development for People Rather Than Places," Population and Development Review, The Population Council, Inc., vol. 34(3), pages 395-434, September.
    23. repec:ces:ifodic:v:13:y:2015:i:2:p:19170023 is not listed on IDEAS
    24. Jorgen Hansen & Magnus Lofstrom, 2003. "Immigrant Assimilation and Welfare Participation Do Immigrants Assimilate Into or Out of Welfare?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    25. Timothy J. Hatton, 2017. "Refugees and asylum seekers, the crisis in Europe and the future of policy," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 447-496.
    26. Pieter Bevelander, 2020. "Integrating refugees into labor markets," IZA World of Labor, Institute of Labor Economics (IZA), pages 269-269, September.
    27. Michael Clemens & Lant Pritchett, 2008. "Income per natural: Measuring development as if people mattered more than places," Working Papers 143, Center for Global Development.
    28. Timothy J. Hatton, 2009. "The Rise and Fall of Asylum: What Happened and Why?," Economic Journal, Royal Economic Society, vol. 119(535), pages 183-213, February.
    29. Timothy J. Hatton, 2015. "Asylum Policy in the EU: the Case for Deeper Integration," CESifo Economic Studies, CESifo, vol. 61(3-4), pages 605-637.
    30. Jesús Fernández-Huertas Moraga & Hillel Rapoport, 2015. "Tradable Refugee-Admission Quotas, Matching and the New European Agenda for Migration," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 50-56, August.
    31. Shekhar Aiyar & Bergljot B Barkbu & Nicoletta Batini & Helge Berger & Enrica Detragiache & Allan Dizioli & Christian H Ebeke & Huidan Huidan Lin & Linda Kaltani & Sebastian Sosa & Antonio Spilimbergo , 2016. "The Refugee Surge in Europe; Economic Challenges," IMF Staff Discussion Notes 16/2, International Monetary Fund.
    32. Brian Bell & Francesco Fasani & Stephen Machin, 2013. "Crime and Immigration: Evidence from Large Immigrant Waves," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1278-1290, October.
    33. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 118(1), pages 329-357.
    34. Chiswick, Barry R. & Miller, Paul W., 2014. "International Migration and the Economics of Language," IZA Discussion Papers 7880, Institute of Labor Economics (IZA).
    35. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2012. "The Short- and Long-Term Career Effects of Graduating in a Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 1-29, January.
    36. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2014. "Immigrants, Labour Market Performance and Social Insurance," Economic Journal, Royal Economic Society, vol. 124(580), pages 644-683, November.
    37. Pieter Bevelander & Ravi Pendakur, 2012. "The labour market integration of refugee and family reunion immigrants: A comparison of outcomes in Canada and Sweden," Norface Discussion Paper Series 2012041, Norface Research Programme on Migration, Department of Economics, University College London.
    38. James Ted Mcdonald & Christopher Worswick, 1999. "The Earnings of Immigrant Men in Australia: Assimilation, Cohort Effects, and Macroeconomic Conditions," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 49-62, March.
    39. Gregg, Paul, 2001. "The Impact of Youth Unemployment on Adult Unemployment in the NCDS," Economic Journal, Royal Economic Society, vol. 111(475), pages 626-653, November.
    40. 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).
    41. Idean Salehyan, 2008. "The Externalities of Civil Strife: Refugees as a Source of International Conflict," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 787-801, October.
    42. Cutler, David M. & Glaeser, Edward L. & Vigdor, Jacob L., 2008. "When are ghettos bad? Lessons from immigrant segregation in the United States," Journal of Urban Economics, Elsevier, vol. 63(3), pages 759-774, May.
    43. Luik, Marc-André & Emilsson, Henrik & Bevelander, Pieter, 2016. "Explaining the Male Native-Immigrant Employment Gap in Sweden: The Role of Human Capital and Migrant Categories," IZA Discussion Papers 9943, Institute of Labor Economics (IZA).
    44. Sarvimäki, Matti, 2017. "Labor Market Integration of Refugees in Finland," Research Reports 185, VATT Institute for Economic Research.
    45. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 128-161.
    46. Michael Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk? - Working Paper 264," Working Papers 264, Center for Global Development.
    47. Olof Åslund & Dan-Olof Rooth, 2007. "Do when and where matter? initial labour market conditions and immigrant earnings," Economic Journal, Royal Economic Society, vol. 117(518), pages 422-448, March.
    48. McDonald, James Ted & Worswick, Christopher, 1999. "The Earnings of Immigrant Men in Australia: Assimilation, Cohort Effects, and Macroeconomic Conditions," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 49-62, March.
    49. Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
    50. Bansak, Kirk & Hainmueller, Jens & Hangartner, Dominik, 2016. "How economic, humanitarian, and religious concerns shape European attitudes toward asylum seekers," LSE Research Online Documents on Economics 67898, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2017. "The (Struggle for) Labour Market Integration of Refugees: Evidence from European Countries," CReAM Discussion Paper Series 1716, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    2. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 497-550.
    3. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    4. 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.
    5. Azlor, Luz & Damm, Anna Piil & Schultz-Nielsen, Marie Louise, 2020. "Local labour demand and immigrant employment," Labour Economics, Elsevier, vol. 63(C).
    6. 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.
    7. Boberg-Fazlic, Nina & Sharp, Paul, 2020. "Is there a Refugee Gap? Evidence from Over a Century of Danish Naturalizations," CAGE Online Working Paper Series 506, Competitive Advantage in the Global Economy (CAGE).
    8. Boberg-Fazlic, Nina & Sharp, Paul, 2020. "Is there a Refugee Gap? Evidence from Over a Century of Danish Naturalizations," CEPR Discussion Papers 15183, C.E.P.R. Discussion Papers.
    9. Lens, Dries & Marx, Ive & Vujic, Suncica, 2018. "Is Quick Formal Access to the Labor Market Enough? Refugees' Labor Market Integration in Belgium," IZA Discussion Papers 11905, Institute of Labor Economics (IZA).
    10. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2019. "The effects of foreign aid on refugee flows," European Economic Review, Elsevier, vol. 112(C), pages 127-147.
    11. Nadiya Ukrayinchuk & Olena Havrylchyk, 2020. "Living in limbo: Economic and social costs for refugees," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1523-1551, November.
    12. Dries Lens & Ive Marx & Sunčica Vujić, 2017. "Integrating (former) asylum seekers into the Belgian labour market. What can we learn from the recent past?," Working Papers 1710, Herman Deleeck Centre for Social Policy, University of Antwerp.
    13. Azarnert, Leonid V., 2018. "Refugee resettlement, redistribution and growth," European Journal of Political Economy, Elsevier, vol. 54(C), pages 89-98.
    14. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    15. Toman Barsbai & Andreas Steinmayr & Christoph Winter, 2022. "Immigrating into a Recession: Evidence from Family Migrants to the U.S," Working Papers 2022-01, Faculty of Economics and Statistics, University of Innsbruck.
    16. Dagnelie, Olivier & Mayda, Anna Maria & Maystadt, Jean-François, 2019. "The labor market integration of refugees in the United States: Do entrepreneurs in the network help?," European Economic Review, Elsevier, vol. 111(C), pages 257-272.
    17. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.
    18. Jordi Paniagua & Jesús Peiró-Palomino & Andrés J. Picazo-Tadeo, 2021. "Asylum Migration in OECD Countries: In Search of Lost Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 1109-1137, February.
    19. Aksoy, Cevat Giray & Poutvaara, Panu & Schikora, Felicitas, 2020. "First Time around: Local Conditions and Multi-Dimensional Integration of Refugees," IZA Discussion Papers 13914, Institute of Labor Economics (IZA).
    20. repec:ces:ifodic:v:14:y:2017:i:4:p:19271452 is not listed on IDEAS
    21. Olof Åslund & Per-Anders Edin & Peter Fredriksson & Hans Grönqvist, 2011. "Peers, Neighborhoods, and Immigrant Student Achievement: Evidence from a Placement Policy," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 67-95, April.

    More about this item

    Keywords

    Assimilation; asylum policies; asylum seekers; refugee gap;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:12718. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.cepr.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.