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  • 2020-2022  (2)
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  • 1
    Publication Date: 2021-09-14
    Description: We study the labour market performance of refugees vis-à-vis comparable migrants across 20 European countries and over time. In the first part of our analysis, we document that labour market outcomes for refugees are consistently worse than those for other migrants. Refugees are 11.6% less likely to have a job and 22% more likely to be unemployed than other migrants with similar characteristics. Their income, occupational quality and labour market participation are also relatively weaker. These gaps are larger relative to economic than non-economic migrants, and persist until about 10–15 years after immigration. In the second part of our analysis, we investigate the role of economic conditions and migration and asylum policy regimes at the time of arrival in shaping integration paths of refugees. First, we find that immigrating in a recession produces scarring effects for all migrants but no differential effect for forced migrants, leaving little role for this channel to explain observed refugee gaps. Secondly, we focus on the impact on refugees of being subject to spatial dispersal policies. Our estimates imply that dispersed refugees experience a persistent impact on their residential choices and substantial long run losses in their economic integration with respect to non-dispersed refugees.
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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  • 2
    Publication Date: 2021-05-29
    Description: This paper investigates the medium- to long-term effects on refugee labour market outcomes of the temporary employment bans being imposed on asylum seekers in many countries. Using a newly collected data set on employment restrictions together with individual data for refugees entering European countries between 1985 and 2012, our empirical strategy exploits the geographical and temporal variation in employment bans generated by their staggered introduction and removal coupled with frequent changes at the intensive margin. We find that exposure to a ban at arrival reduces refugee employment probability in post-ban years by 15%, an impact driven primarily by lower labour market participation. These effects are not mechanical, increase non-linearly in ban length, and last up to 10 years post arrival. The detrimental effects of employment bans are concentrated among less educated refugees, translate into lower occupational quality, and seem not to be driven by selective migration. Our causal estimates are robust to several identification tests accounting for the potential endogeneity of employment ban policies, including placebo analysis of non-refugee migrants and an instrumental variable strategy. We estimate a €37.6 billion output loss from the bans imposed on asylum seekers who arrived in Europe during the so-called 2015 refugee crisis.
    Print ISSN: 1542-4766
    Electronic ISSN: 1542-4774
    Topics: Economics
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