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Limbo or leverage? Asylum waiting and refugee integration

Author

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  • Åslund, Olof
  • Engdahl, Mattias
  • Rosenqvist, Olof

Abstract

We study labor market and health implications of asylum wait time, a policy margin with bearing on public finances. The analysis exploits a rapid and unexpected increase in pending applications, which extended processing times with several months for new asylum seekers to Sweden. Longer waiting slows down integration by delaying labor market entry and decreasing participation and performance in active policy measures. Accumulated earnings during the first four years after application are 2.6 percent lower per added month of waiting. The impact is due to delay, not to negative human capital effects of waiting per se. There is no evidence of detrimental effects on psychiatric or other forms of health. Importantly, our results suggest that asylum seekers in Sweden can use the waiting time for useful preparations. The analysis consistently indicates that case workers, teachers and employers involved in post-asylum integration measures perceive individuals who have waited longer as more prepared.

Suggested Citation

  • Åslund, Olof & Engdahl, Mattias & Rosenqvist, Olof, 2024. "Limbo or leverage? Asylum waiting and refugee integration," Journal of Public Economics, Elsevier, vol. 234(C).
  • Handle: RePEc:eee:pubeco:v:234:y:2024:i:c:s0047272724000549
    DOI: 10.1016/j.jpubeco.2024.105118
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    More about this item

    Keywords

    Asylum waiting; Labor market entry; Health;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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