The importance of host country human capital for the labour market integration of different migrant groups in Europe

The labour market integration of migrants is a heavily politicised topic in Europe. Using detailed and recently updated data on migrant’s motivations this paper places a much needed emphasis upon the heterogeneity of migrant groups and the pathways to their labour market integration. We focus on host country human capital and labour market outcomes from three ad-hoc modules of the EU Labour Force Survey to analyse (1) who takes up host country human capital; and (2) determine what the role of host country human capital acquisitions are in the labour market integration of heterogenous migrant groups and across time. Our results indicate that the take-up of host country human capital differs strongly between countries, with some of these differences reflecting the impact of specific policies, as well as variation in the economic context upon arrival. Importantly, we find that whereas non-economic migrants are at a substantial disadvantage compared to the majority, non-economic migrants benefit relatively much more from host-country human capital, particularly better language skills, host country qualifications and having equivalised their degrees. Our analysis points to the need to consider the trajectories of labour market integration of different migrant groups separately as there is great variation with years of residence and the take up of host country human capital.