IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/110500.html
   My bibliography  Save this paper

Barriers to humanitarian migration, victimisation and integration outcomes: evidence from Germany

Author

Listed:
  • Freitas-Monteiro, Teresa
  • Ludolph, Lars

Abstract

In this paper, we link the peril of asylum seekers’ migratory journey to economically quantifiable outcomes in the destination country using refugee survey data from Germany collected in the aftermath of the 2015 refugee crisis. We start by showing that, accounting for selection effects, physical victimisation during the journey to Germany is strongly associated with significantly lower mental well-being and general health upon arrival in the destination. The physical victimisation experience severely distorts the human capital investment decision by leading affected refugees to favour joining the labour force and engaging in part-time and marginal employment over pursuing host-country education. We place our findings into both the psychiatric and experimental economic literature, which suggest that experiencing physical trauma in vulnerable situations results in a "loss of future directedness" or "impatience" among the victimised, leading them to discount future payoffs more heavily.

Suggested Citation

  • Freitas-Monteiro, Teresa & Ludolph, Lars, 2021. "Barriers to humanitarian migration, victimisation and integration outcomes: evidence from Germany," LSE Research Online Documents on Economics 110500, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:110500
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/110500/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lisa Cameron & Manisha Shah, 2015. "Risk-Taking Behavior in the Wake of Natural Disasters," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 484-515.
    2. Martin Foureaux Koppensteiner & Lívia Menezes, 2021. "Violence and Human Capital Investments," Journal of Labor Economics, University of Chicago Press, vol. 39(3), pages 787-823.
    3. Cevat Giray Aksoy & Panu Poutvaara, 2019. "Refugees’ Self-selection into Europe: Who Migrates Where?," ifo Working Paper Series 289, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Richard H. Thaler & Shlomo Benartzi, 2004. "Save More Tomorrow (TM): Using Behavioral Economics to Increase Employee Saving," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 164-187, February.
    5. Matthias Sutter & Martin G. Kocher & Daniela Glätzle-Rützler & Stefan T. Trautmann, 2013. "Impatience and Uncertainty: Experimental Decisions Predict Adolescents' Field Behavior," American Economic Review, American Economic Association, vol. 103(1), pages 510-531, February.
    6. Anna Bindler & Nadine Ketel, 2022. "Scaring or Scarring? Labor Market Effects of Criminal Victimization," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 939-970.
    7. Lucas Guichard, 2020. "Self-selection of Asylum Seekers: Evidence From Germany," Demography, Springer;Population Association of America (PAA), vol. 57(3), pages 1089-1116, June.
    8. Chie Hanaoka & Hitoshi Shigeoka & Yasutora Watanabe, 2018. "Do Risk Preferences Change? Evidence from the Great East Japan Earthquake," American Economic Journal: Applied Economics, American Economic Association, vol. 10(2), pages 298-330, April.
    9. Stephan Meier & Charles Sprenger, 2010. "Present-Biased Preferences and Credit Card Borrowing," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 193-210, January.
    10. Steffen Andersen & Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2008. "Eliciting Risk and Time Preferences," Econometrica, Econometric Society, vol. 76(3), pages 583-618, May.
    11. Kettlewell, Nathan, 2019. "Risk preference dynamics around life events," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 66-84.
    12. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2018. "Time varying risk aversion," Journal of Financial Economics, Elsevier, vol. 128(3), pages 403-421.
    13. 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).
    14. Ornstein, Petra, 2017. "The price of violence: Consequences of violent crime in Sweden," Working Paper Series 2017:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    15. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588.
    16. Mathieu Couttenier & Veronica Petrencu & Dominic Rohner & Mathias Thoenig, 2019. "The Violent Legacy of Conflict: Evidence on Asylum Seekers, Crime, and Public Policy in Switzerland," American Economic Review, American Economic Association, vol. 109(12), pages 4378-4425, December.
    17. Pamela Jakiela & Owen Ozier, 2019. "The Impact of Violence on Individual Risk Preferences: Evidence from a Natural Experiment," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 547-559, July.
    18. Callen, Mike & Isaqzadeh, Mohammad & Long, James D. & Sprenger, Charles, 2014. "Violence and risk preference: experimental evidence from Afghanistan," LSE Research Online Documents on Economics 102932, London School of Economics and Political Science, LSE Library.
    19. 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.
    20. 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.
    21. Michele Battisti & Giovanni Peri & Agnese Romiti, 2016. "Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success," NBER Working Papers 22389, National Bureau of Economic Research, Inc.
    22. Mark C. Regets & Harriet Orcutt Duleep, 1999. "Immigrants and Human-Capital Investment," American Economic Review, American Economic Association, vol. 89(2), pages 186-191, May.
    23. Eckel, Catherine C. & El-Gamal, Mahmoud A. & Wilson, Rick K., 2009. "Risk loving after the storm: A Bayesian-Network study of Hurricane Katrina evacuees," Journal of Economic Behavior & Organization, Elsevier, vol. 69(2), pages 110-124, February.
    24. Michael Callen & Mohammad Isaqzadeh & James D. Long & Charles Sprenger, 2014. "Violence and Risk Preference: Experimental Evidence from Afghanistan," American Economic Review, American Economic Association, vol. 104(1), pages 123-148, January.
    25. Stefano DellaVigna & M. Daniele Paserman, 2005. "Job Search and Impatience," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 527-588, July.
    26. Christopher Blattman & Jeannie Annan, 2010. "The Consequences of Child Soldiering," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 882-898, November.
    27. 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.
    28. Ryan Brown & Verónica Montalva & Duncan Thomas & Andrea Velásquez, 2019. "Impact of Violent Crime on Risk Aversion: Evidence from the Mexican Drug War," The Review of Economics and Statistics, MIT Press, vol. 101(5), pages 892-904, December.
    29. Sarah Brown & Jennifer Roberts & Karl Taylor, 2010. "Reservation wages, labour market participation and health," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 501-529, July.
    30. Decker, Simon & Schmitz, Hendrik, 2016. "Health shocks and risk aversion," Journal of Health Economics, Elsevier, vol. 50(C), pages 156-170.
    31. Beine, Michel & Charness, Gary & Dupuy, Arnaud & Joxhe, Majlinda, 2020. "Shaking Things Up: On the Stability of Risk and Time Preferences," IZA Discussion Papers 13084, Institute of Labor Economics (IZA).
    32. Cassar, Alessandra & Healy, Andrew & von Kessler, Carl, 2017. "Trust, Risk, and Time Preferences After a Natural Disaster: Experimental Evidence from Thailand," World Development, Elsevier, vol. 94(C), pages 90-105.
    33. Marbach, Moritz & Hainmueller, Jens & Hangartner, Dominik, 2017. "The Long-Term Impact of Employment Bans on the Economic Integration of Refugees," Research Papers repec:ecl:stabus:3618, Stanford University, Graduate School of Business.
    34. Stéphane Mahuteau & Rong Zhu, 2016. "Crime Victimisation and Subjective Well‐Being: Panel Evidence From Australia," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1448-1463, November.
    35. Couttenier, Mathieu & Preotu, Veronica & Rohner, Dominic & Thoenig, Mathias, 2016. "The Violent Legacy of Victimization: Post-Conflict Evidence on Asylum Seekers, Crimes and Public Policy in Switzerland," CEPR Discussion Papers 11079, C.E.P.R. Discussion Papers.
    36. David W. Johnston & Michael A. Shields & Agne Suziedelyte, 2018. "Victimisation, Well†being and Compensation: Using Panel Data to Estimate the Costs of Violent Crime," Economic Journal, Royal Economic Society, vol. 128(611), pages 1545-1569, June.
    37. Callen, Michael, 2015. "Catastrophes and time preference: Evidence from the Indian Ocean Earthquake," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 199-214.
    38. Brian C. Cadena & Benjamin J. Keys, 2015. "Human Capital and the Lifetime Costs of Impatience," American Economic Journal: Economic Policy, American Economic Association, vol. 7(3), pages 126-153, August.
    39. Cevat Giray Aksoy & Panu Poutvaara, 2019. "Refugees’ Self-selection into Europe: Who Migrates Where?," CReAM Discussion Paper Series 1901, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    40. Page, Lionel & Savage, David A. & Torgler, Benno, 2014. "Variation in risk seeking behaviour following large losses: A natural experiment," European Economic Review, Elsevier, vol. 71(C), pages 121-131.
    41. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    42. 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).
    43. Lucas Guichard, 2020. "Self-selection of Asylum Seekers: Evidence From Germany," Post-Print hal-03416012, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lars Ludolph, 2021. "The Value of Formal Host-Country Education for the Labour Market Position of Refugees: Evidence from Austria," CESifo Working Paper Series 9241, CESifo.

    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. Jetter, Michael & Magnusson, Leandro M. & Roth, Sebastian, 2020. "Becoming sensitive: Males’ risk and time preferences after the 2008 financial crisis," European Economic Review, Elsevier, vol. 128(C).
    2. repec:jdm:journl:v:17:y:2022:i:4:p:745-767 is not listed on IDEAS
    3. Andreas C. Drichoutis & Rodolfo M. Nayga, 2022. "On the stability of risk and time preferences amid the COVID-19 pandemic," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 759-794, June.
    4. Kettlewell, Nathan, 2019. "Risk preference dynamics around life events," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 66-84.
    5. Fang, Guanfu & Li, Wei & Zhu, Ying, 2022. "The shadow of the epidemic: Long-term impacts of meningitis exposure on risk preference and behaviors," World Development, Elsevier, vol. 157(C).
    6. Beine, Michel & Charness, Gary & Dupuy, Arnaud & Joxhe, Majlinda, 2020. "Shaking Things Up: On the Stability of Risk and Time Preferences," IZA Discussion Papers 13084, Institute of Labor Economics (IZA).
    7. Kettlewell, Nathan & Rijsdijk, Fruhling & Siribaddana, Sisira & Sumathipala, Athula & Tymula, Agnieszka & Zavos, Helena & Glozier, Nicholas, 2018. "Civil War, Natural Disaster and Risk Preferences: Evidence from Sri Lankan Twins," IZA Discussion Papers 11901, Institute of Labor Economics (IZA).
    8. Dawoon Jung & Tushar Bharati & Seungwoo Chin, 2021. "Does Education Affect Time Preference? Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1451-1499.
    9. Abdelaziz Alsharawy & Sheryl Ball & Alec Smith & Ross Spoon, 2021. "Fear of COVID-19 changes economic preferences: evidence from a repeated cross-sectional MTurk survey," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(2), pages 103-119, December.
    10. Delphine Boutin & Laurène Petifour & Haris Megzari, 2022. "Instability of preferences due to Covid-19 Crisis and emotions: a natural experiment from urban Burkina Faso," Working Papers hal-03623601, HAL.
    11. Lars Ludolph, 2021. "The Value of Formal Host-Country Education for the Labour Market Position of Refugees: Evidence from Austria," CESifo Working Paper Series 9241, CESifo.
    12. Haile, Kaleab K. & Nillesen, Eleonora & Tirivayi, Nyasha, 2020. "Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia," World Development, Elsevier, vol. 130(C).
    13. Yusuke Kuroishi & Yasuyuki Sawada, 2019. "On the Stability of Preferences:Experimental Evidence from Two Disasters," CIRJE F-Series CIRJE-F-1130, CIRJE, Faculty of Economics, University of Tokyo.
    14. Dietmar Fehr & Yannick Reichlin, 2021. "Status, Control Beliefs, and Risk Taking," CESifo Working Paper Series 9253, CESifo.
    15. Guido Blasio & Maria Paola & Samuele Poy & Vincenzo Scoppa, 2021. "Massive earthquakes, risk aversion, and entrepreneurship," Small Business Economics, Springer, vol. 57(1), pages 295-322, June.
    16. Delphine BOUTIN & Laurène PETIFOUR & Haris MEGZARI, 2022. "Instability of preferences due to Covid-19 Crisis and emotions: a natural experiment from urban Burkina Faso," Bordeaux Economics Working Papers 2022-05, Bordeaux School of Economics (BSE).
    17. Manian, Shanthi, 2021. "Conflict and risky health behavior: Evidence from Mexico's drug war," Journal of Development Economics, Elsevier, vol. 148(C).
    18. Trung X. Hoang & Nga V. T. Le, 2021. "Natural disasters and risk aversion: Evidence from Vietnam," Natural Resources Forum, Blackwell Publishing, vol. 45(3), pages 211-229, August.
    19. Marino Fages, Diego & Morales Cerda, Matías, 2022. "Migration and social preferences," Economics Letters, Elsevier, vol. 218(C).
    20. Khanam, Taznoore & Pede, Valerien O. & Wheatley, W. Parker, 2020. "Climate Change and the Formation of Risk and Time Preferences: A Study of Rice Farmers in Bangladesh," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304414, Agricultural and Applied Economics Association.
    21. Muhammad Nasir & Marc Rockmore & Chih Ming Tan, 2015. "It's No Spring Break in Cancun: The Effects of Exposure to Violence on Risk Preferences, Pro-Social Behavior, and Mental Health," Working Paper series 15-40, Rimini Centre for Economic Analysis.

    More about this item

    Keywords

    refugees; victimisation; labour market integration; education;
    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    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:ehl:lserod:110500. 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://edirc.repec.org/data/lsepsuk.html .

    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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    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.