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Local labor markets and earnings of refugee immigrants

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  • Anna Godøy

    (Institute for Social Research)

Abstract

This paper estimates how local conditions at the time of immigration influence later outcomes for refugee immigrants to Norway, exploiting the quasi-experimental nature of the Norwegian system for settlement for “quota” or resettlement refugees. A unique administrative dataset with assigned settlement municipalities is used to identify the causal effect of initial location characteristics. Being placed in a labor market where other non-OECD immigrants do well increases own annual labor earnings up to 6 years after immigration. Extended models suggest that this effect is not driven by individual scarring effects: when controlling for the contemporaneous employment rate in the assigned region, effects of initial conditions disappear. Rather, the effects appear to be due to persistence in local labor market conditions combined with limited geographical mobility in response to adverse labor market conditions.

Suggested Citation

  • Anna Godøy, 2017. "Local labor markets and earnings of refugee immigrants," Empirical Economics, Springer, vol. 52(1), pages 31-58, February.
    • Handle: RePEc:spr:empeco:v:52:y:2017:i:1:d:10.1007_s00181-016-1067-7
    DOI: 10.1007/s00181-016-1067-7
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    References listed on IDEAS

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    More about this item

    Keywords

    Immigration; Settlement policies; Location choice; Labor market outcomes;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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