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Labor market integration of refugees: RCT evidence from an early intervention program in Sweden

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  • Dahlberg, Matz
  • Egebark, Johan
  • Vikman, Ulrika
  • Özcan, Gülay

Abstract

This study uses a randomized controlled trial to evaluate a new program for increased labor market integration of refugees. The new program starts shortly after the residence permit is granted and uses three main components: early and intensive language training, work practice with supervisors, and job search assistance performed by professional caseworkers. The immediate and intensive assistance contrasts previous integration policies which typically constitute low-intensive help over long periods of time. We find large positive effects on employment of the program, with magnitudes corresponding to around 15 percentage points. A mediation analysis shows that 7–8 percent of the impact of the program seems to be explained by increases in documented language skills. Cost estimates suggest that the new policy is less expensive than earlier labor market programs.

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  • Dahlberg, Matz & Egebark, Johan & Vikman, Ulrika & Özcan, Gülay, 2024. "Labor market integration of refugees: RCT evidence from an early intervention program in Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 614-630.
    • Handle: RePEc:eee:jeborg:v:217:y:2024:i:c:p:614-630
    DOI: 10.1016/j.jebo.2023.11.026
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    More about this item

    Keywords

    Refugee immigration; Integration; Randomized experiment; Labor market program;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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