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Migration policy and labor market integration

Author

Listed:
  • Kerstin Mitterbacher

    (Institute of Banking and Finance, University of Graz)

  • Jürgen Fleiß

    (Business Analytics and Data Science-Center, University of Graz)

  • Stefan Palan

    (Institute of Banking and Finance, University of Graz)

Abstract

We experimentally study economic migrants' willingness to relocate to, and take up work in, the destination country, and, in turn, destination country citizens' willingness to allow economic migrants to relocate to and pursue formal work in their country. In doing so, we focus on economic migrants coming from less developed countries and citizens of more developed destination countries. We find clear evidence for a reciprocal relationship between the individuals in these roles. The labor market participation of economic migrants co-moves with destination countries' openness to welcoming them. However, open migration polices without the threat of facing restrictive policies reduce migrants' willingness to work. At the same time, while the existence of such a threat gets migrants to work, the actual implementation of restrictive policies has the same effects as open migration policies. We conclude that supporting economic migrants in early labor market attachment is crucial to support mutually beneficial co-existence in society.

Suggested Citation

  • Kerstin Mitterbacher & Jürgen Fleiß & Stefan Palan, 2022. "Migration policy and labor market integration," Working Paper Series, Social and Economic Sciences 2022-02, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    • Handle: RePEc:grz:wpsses:2022-02
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    1. Kerstin Mitterbacher & Stefan Palan & Jürgen Fleiß, 2021. "Labor market choices of migrants and redistributive policies," Working Paper Series, Social and Economic Sciences 2021-02, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
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