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The Labor Market Integration of Refugees to the United States: Do Entrepreneurs in the Network Help?

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  • Dagnelie, Olivier

    (University of Rennes)

  • Mayda, Anna Maria

    (Georgetown University)

  • Maystadt, Jean Francois

    (Lancaster University)

Abstract

We investigate whether entrepreneurs in the network of refugees - from the same country of origin - help refugees' labor-market integration by hiring them in their businesses. We analyze the universe of refugee cases without U.S. ties who were resettled in the United States between 2005 and 2010. We address threats to identification due to sorting of refugees into specific labor markets and to strategic placement by resettlement agencies. We find that the probability that refugees are employed 90 days after arrival is positively affected by the number of business owners in their network, but negatively affected by the number of those who are employees. This suggests that network members who are entrepreneurs hire refugees in their business, while network members working as employees compete with them, consistent with refugees complementing the former and substituting for the latter.

Suggested Citation

  • Dagnelie, Olivier & Mayda, Anna Maria & Maystadt, Jean Francois, 2018. "The Labor Market Integration of Refugees to the United States: Do Entrepreneurs in the Network Help?," IZA Discussion Papers 11343, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11343
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    2. Michael A Clemens, 2022. "The economic and fiscal effects on the United States from reduced numbers of refugees and asylum seekers," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 449-486.
    3. Hai‐Anh H. Dang & Trong‐Anh Trinh & Paolo Verme, 2023. "Do refugees with better mental health better integrate? Evidence from the Building a New Life in Australia longitudinal survey," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2819-2835, December.
    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. Palsson, Craig, 2023. "The forces of path dependence: Haiti's refugee camps, 1937–2009," Explorations in Economic History, Elsevier, vol. 89(C).
    6. Matteo Gamalerio & Massimo Morelli & Margherita Negri, 2021. "The Political Economy of Open Borders: Theory and Evidence on the role of Electoral Rules," BAFFI CAREFIN Working Papers 21157, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    7. Ahrens, Achim & Beerli, Andreas & Hangartner, Dominik & Kurer, Selina & Siegenthaler, Michael, 2023. "The Labor Market Effects of Restricting Refugees' Employment Opportunities," IZA Discussion Papers 15901, Institute of Labor Economics (IZA).
    8. Michel Beine & Luisito Bertinelli & Rana Comertpay & Anastasia Litina & Jean-Francois Maystadt, 2020. "The Gravity Model of Forced Displacement Using Mobile Phone Data," Working Papers 293574571, Lancaster University Management School, Economics Department.
    9. Morelli, Massimo & Gamalerio, Matteo & Negri, Margherita, 2020. "Immigration, Occupational Choice and Electoral Rules Theory and Evidence on Dual Ballot Openness," CEPR Discussion Papers 14896, C.E.P.R. Discussion Papers.
    10. Lens Dries & Marx Ive & Vujić Sunčica, 2019. "Double Jeopardy: How Refugees Fare in One European Labor Market," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-29, June.
    11. Seonho Shin, 2022. "Evaluating the Effect of the Matching Grant Program for Refugees: An Observational Study Using Matching, Weighting, and the Mantel-Haenszel Test," Journal of Labor Research, Springer, vol. 43(1), pages 103-133, March.
    12. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    13. María Luz Moyano-Buitrago, 2021. "Inserción laboral de inmigrantes venezolanas, 2014-2019: ¿acumulación de desventajas?," Revista Sociedad y Economía, Universidad del Valle, CIDSE, issue 44, September.
    14. Ben Atta, Oussama & Chort, Isabelle & Senne, Jean Noël, 2022. "Immigration, integration, and the informal economy in OECD countries," GLO Discussion Paper Series 1197, Global Labor Organization (GLO).
    15. Mayda, Anna-Maria & Parsons, Christopher & Pham, Han & Vézina, Pierre-Louis, 2022. "Refugees and foreign direct investment: Quasi-experimental evidence from US resettlements," Journal of Development Economics, Elsevier, vol. 156(C).
    16. Seonho Shin, 2022. "To work or not? Wages or subsidies?: Copula-based evidence of subsidized refugees’ negative selection into employment," Empirical Economics, Springer, vol. 63(4), pages 2209-2252, October.
    17. Cole, Matthew A. & Jabbour, Liza & Ozgen, Ceren & Yumoto, Hiromi, 2024. "Refugees' Economic Integration and Firms," IZA Discussion Papers 16828, Institute of Labor Economics (IZA).
    18. Sinkovics, Noemi & Reuber, A. Rebecca, 2021. "Beyond disciplinary silos: A systematic analysis of the migrant entrepreneurship literature," Journal of World Business, Elsevier, vol. 56(4).
    19. Seonho Shin, 2021. "Were they a shock or an opportunity?: The heterogeneous impacts of the 9/11 attacks on refugees as job seekers—a nonlinear multi-level approach," Empirical Economics, Springer, vol. 61(5), pages 2827-2864, November.
    20. Ibrahim Cifci & Ozan Atsız, 2021. "Understanding the Role of Refugees' Entrepreneurship Motives and Challenges in Integration: Evidence From the Food Industry," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 64(64), pages 1-19, December.

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    More about this item

    Keywords

    entrepreneurship; labor market integration; refugees;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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