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The long-term impact of employment bans on the economic integration of refugees

Many European countries impose employment bans that prevent asylum seekers from entering the local labor market for a certain waiting period upon arrival. We provide evidence on the long-term effects of these employment bans on the subsequent economic integration of refugees. We leverage a natural e...

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Detalles Bibliográficos
Autores principales: Marbach, Moritz, Hainmueller, Jens, Hangartner, Dominik
Formato: Online Artículo Texto
Lenguaje:English
Publicado: American Association for the Advancement of Science 2018
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6155022/
https://www.ncbi.nlm.nih.gov/pubmed/30255139
http://dx.doi.org/10.1126/sciadv.aap9519
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author Marbach, Moritz
Hainmueller, Jens
Hangartner, Dominik
author_facet Marbach, Moritz
Hainmueller, Jens
Hangartner, Dominik
author_sort Marbach, Moritz
collection PubMed
description Many European countries impose employment bans that prevent asylum seekers from entering the local labor market for a certain waiting period upon arrival. We provide evidence on the long-term effects of these employment bans on the subsequent economic integration of refugees. We leverage a natural experiment in Germany, where a court ruling prompted a reduction in the length of the employment ban. We find that, 5 years after the waiting period was reduced, employment rates were about 20 percentage points lower for refugees who, upon arrival, had to wait for an additional 7 months before they were allowed to enter the labor market. It took up to 10 years for this employment gap to disappear. Our findings suggest that longer employment bans considerably slowed down the economic integration of refugees and reduced their motivation to integrate early on after arrival. A marginal social cost analysis for the study sample suggests that this employment ban cost German taxpayers about 40 million euros per year, on average, in terms of welfare expenditures and foregone tax revenues from unemployed refugees.
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spelling pubmed-61550222018-09-25 The long-term impact of employment bans on the economic integration of refugees Marbach, Moritz Hainmueller, Jens Hangartner, Dominik Sci Adv Research Articles Many European countries impose employment bans that prevent asylum seekers from entering the local labor market for a certain waiting period upon arrival. We provide evidence on the long-term effects of these employment bans on the subsequent economic integration of refugees. We leverage a natural experiment in Germany, where a court ruling prompted a reduction in the length of the employment ban. We find that, 5 years after the waiting period was reduced, employment rates were about 20 percentage points lower for refugees who, upon arrival, had to wait for an additional 7 months before they were allowed to enter the labor market. It took up to 10 years for this employment gap to disappear. Our findings suggest that longer employment bans considerably slowed down the economic integration of refugees and reduced their motivation to integrate early on after arrival. A marginal social cost analysis for the study sample suggests that this employment ban cost German taxpayers about 40 million euros per year, on average, in terms of welfare expenditures and foregone tax revenues from unemployed refugees. American Association for the Advancement of Science 2018-09-19 /pmc/articles/PMC6155022/ /pubmed/30255139 http://dx.doi.org/10.1126/sciadv.aap9519 Text en Copyright © 2018 The Authors, some rights reserved; exclusive licensee American Association for the Advancement of Science. No claim to original U.S. Government Works. Distributed under a Creative Commons Attribution NonCommercial License 4.0 (CC BY-NC). http://creativecommons.org/licenses/by-nc/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial license (http://creativecommons.org/licenses/by-nc/4.0/) , which permits use, distribution, and reproduction in any medium, so long as the resultant use is not for commercial advantage and provided the original work is properly cited.
spellingShingle Research Articles
Marbach, Moritz
Hainmueller, Jens
Hangartner, Dominik
The long-term impact of employment bans on the economic integration of refugees
title The long-term impact of employment bans on the economic integration of refugees
title_full The long-term impact of employment bans on the economic integration of refugees
title_fullStr The long-term impact of employment bans on the economic integration of refugees
title_full_unstemmed The long-term impact of employment bans on the economic integration of refugees
title_short The long-term impact of employment bans on the economic integration of refugees
title_sort long-term impact of employment bans on the economic integration of refugees
topic Research Articles
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6155022/
https://www.ncbi.nlm.nih.gov/pubmed/30255139
http://dx.doi.org/10.1126/sciadv.aap9519
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