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

Abstract

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.