Does Integration Policy Integrate? The Employment Effects of Sweden's 2010 Reform of the Introduction Program

Haodong Qi (), Nahikari Irastorza (), Henrik Emilsson () and Pieter Bevelander ()
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Haodong Qi: Malmö University
Nahikari Irastorza: Malmö University
Henrik Emilsson: Malmö University
Pieter Bevelander: Malmö University

No 12594, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Sweden, like many other European countries, has seen a surge in refugee immigrants over recent years, which raises a concern about the labour market integration of these newcomers. This paper investigates whether integration policy may improve refugees' labour market performance. Specifically, we examine the employment effects of the 2010 reform of the introduction program (known as IP), and how the effects vary depending on refugees' educational attainment. Given that the eligibility for the new IP was exogenously determined by whether the refugee status was granted before or after December 1, 2010, we identify the employment effects by comparing those who participated in the new IP (treatment group), with those who participated in the old IP (control group). Using a triple difference method, we find positive employment effects of the new IP that exacerbate over time. The effects are significant and identical for male refugees, regardless of educational attainment; in contrast, the effects of program participation for refugee women vary by education level, and are greater for high-educated women than that for the low-educated counterparts.

Keywords: employment; labour market policy; refugees (search for similar items in EconPapers)
JEL-codes: J62 J68 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2019-09
New Economics Papers: this item is included in nep-eur, nep-lab and nep-mig
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Published - published as 'Integration policy and refugees’ economic performance: Evidence from Sweden’s 2010 reform of the introduction programme' in: International Migration, 2021, 59 (4), 42 - 58

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