Local labour demand and immigrant employment

Azlor, Luz; Damm, Anna Piil; Schultz-Nielsen, Marie Louise

doi:10.1016/j.labeco.2020.101808

Cited by 38 publications

(38 citation statements)

References 43 publications

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“…Our analysis also contributes to the literature on the importance of initial conditions at entry in the labour market, one strand of which focuses on how labour market conditions at arrival affect future outcomes for immigrants (Åslund and Rooth, 2007;Azlor et al, 2020). In terms of market entry conditions in general, the existing evidence for natives strongly suggests that graduating in a recession may have lasting negative consequences on earnings and other labour market outcomes (Kahn, 2010;Oreopoulos and von Wachter, 2012;Altonji et al, 2016).…”

Section: Introductionmentioning

confidence: 85%

Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes

Fasani

Frattini

Minale

2021

Journal of the European Economic Association

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This article 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 dataset 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 EUR 37.6 billion output loss from the bans imposed on asylum seekers who arrived in Europe during the so-called 2015 refugee crisis.

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Section: Introductionmentioning

confidence: 85%

Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes

Fasani

Frattini

Minale

2021

Journal of the European Economic Association

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“…Thirdly, our paper brings novel evidence to the literature on dispersal policies of asylum seekers and refugees. Some studies have relied on the quasi-random allocation imposed by these policies to generate exogenous variation in initial conditions faced by refugees in regional density of co-ethnic networks (Edin et al 2003;Damm 2009 andBeaman 2012;Battisti et al 2016;Martén et al 2019;Dagnelie et al 2019) or local labour market demand (Åslund and Rooth 2007;Godøy 2017;Azlor et al 2020). Other papers have exploited these allocation policies to identify causal impacts on different outcomes, such as crime (Bell et al 2013;Damm and Dustmann 2014;Couttenier et al 2019), employment and wages of native workers (Foged and Peri, 2016) or politics (Dustmann et al 2019;Bratsberg et al forthcoming).…”

Section: Introductionmentioning

confidence: 99%

(The Struggle for) Refugee integration into the labour market: evidence from Europe

Fasani

Frattini

Minale

2021

Journal of Economic Geography

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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.

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“…Finally, Table 1 demonstrates lower IRs in the Copenhagen city and suburb. This is partially a result of the Danish dispersal policies which caused the capital area to receive fewer refugees during 2002-2015 when the IRs were higher [33].…”

Section: Resultsmentioning

confidence: 99%

Waiting for family reunification and the risk of mental disorders among refugee fathers: a 24-year longitudinal cohort study from Denmark

Hvidtfeldt

Petersen

Nørredam

2021

Soc Psychiatry Psychiatr Epidemiol

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Purpose To examine whether family separation caused by prolonged waiting for family reunification is associated with the risk of mental disorders among refugee fathers. Method Based on full-population Danish registry data covering 1995–2015, we mapped arrival patterns among nuclear refugee family members resettled in Denmark (n = 76,776) and established a cohort of refugee fathers (n = 6176) who all arrived alone and later obtained family reunification with their wife and children. The fathers were followed for up to 24 years, from the day their residence permit was issued until their first psychiatric diagnosis, emigration, death, or study end, whichever came first. Using Cox proportional hazard regression, we estimated hazard ratios (HRs) of being diagnosed with a mental disorder (i) for the period while the fathers were still separated from their family and (ii) across varying lengths of family separation. Results The HR of any mental disorder was 2.10 (95% confidence interval (CI): 1.57–2.81) for fathers still separated from their family compared with those who had obtained family reunification. The HR increased with longer family separation. Compared with fathers separated for < 9 months, the HR of any mental disorder was 1.43 (95% CI 1.08–1.89) for 9–11 months’ separation, increasing to 2.02 (95% CI 1.52–2.68) for 18–23 months’ separation. Results were driven by post-traumatic stress disorder. Conclusion Fathers waiting for their wives and children face an increased risk of mental disorders. Countries receiving refugees should be aware that delaying family reunification can lead to adverse mental health effects.

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Local labour demand and immigrant employment

Cited by 38 publications

References 43 publications

Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes

Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes

(The Struggle for) Refugee integration into the labour market: evidence from Europe

Waiting for family reunification and the risk of mental disorders among refugee fathers: a 24-year longitudinal cohort study from Denmark

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