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Integrating Refugees by Addressing Labor Shortages? A Policy Evaluation

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Listed:
  • Mette Foged
  • Janis Kreuder
  • Giovanni Peri

Abstract

We evaluate the effect on newly arrived refugees' employment of a policy, introduced in Denmark in 2013, that matched refugees to occupations with local labor shortages after basic training for those jobs. Leveraging the staggered roll-out across municipalities, we find that the policy increased employment by 5-6 percentage points one year after arrival and 10 percentage points two years after. The policy was especially effective for male refugees and refugees with some secondary education. The findings suggest that this type of policy could alleviate long-term labor shortages and integrate low-skilled immigrants, while having minimal competition effects on natives.

Suggested Citation

  • Mette Foged & Janis Kreuder & Giovanni Peri, 2022. "Integrating Refugees by Addressing Labor Shortages? A Policy Evaluation," NBER Working Papers 29781, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29781
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    Cited by:

    1. Dahlberg, Matz & Egebark, Johan & Vikman, Ulrika & Özcan, Gülay, 2024. "Labor market integration of refugees: RCT evidence from an early intervention program in Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 614-630.
    2. Schilling, Pia & Stillman, Steven, 2024. "The impact of natives’ attitudes on refugee integration," Labour Economics, Elsevier, vol. 87(C).
    3. Adnan, Wifag & Zhang, Jonathan & Zheng, Angela, 2023. "Intergenerational Mobility of Immigrants by Refugee Status: An Analysis of Linked Landing Files and Tax Records," IZA Discussion Papers 16471, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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