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Pathways to Integration: The Effect of Apprenticeships in Understaffed Professions on Refugee Employment

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  • Wett Valentin

Abstract

This paper investigates the impact of a targeted apprenticeship policy on the labor market integration of Afghan asylum seekers in Austria, using a fuzzy Regression Discontinuity Design. The policy allows asylum seekers to engage in apprenticeships in understaffed professions during their asylum process. The analysis uncovers substantial effects, with participants being employed for an additional 935 days and earning €67,759 more over five years compared to non-participants. Additionally, the program significantly reduces welfare dependency, lowering welfare receipt in general by 26 months and reliance on Basic Subsistence Support by 27.5 months. There is no effect on the probability of remaining insured in Austria.

Suggested Citation

  • Wett Valentin, 2024. "Pathways to Integration: The Effect of Apprenticeships in Understaffed Professions on Refugee Employment," Asociación Argentina de Economía Política: Working Papers 4772, Asociación Argentina de Economía Política.
    • Handle: RePEc:aep:anales:4772
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    References listed on IDEAS

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    1. Jacob Nielsen Arendt, 2022. "Labor market effects of a work-first policy for refugees," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(1), pages 169-196, January.
    2. Courtney Brell & Christian Dustmann & Ian Preston, 2020. "The Labor Market Integration of Refugee Migrants in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 94-121, Winter.
    3. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
    4. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2021. "Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2803-2854.
    5. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    6. Marbach, Moritz & Hainmueller, Jens & Hangartner, Dominik, 2017. "The Long-Term Impact of Employment Bans on the Economic Integration of Refugees," Research Papers repec:ecl:stabus:3618, Stanford University, Graduate School of Business.
    7. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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