Integrating Refugees by Addressing Labor Shortages? A Policy Evaluation

Mette Foged, Janis Kreuder and Giovanni Peri

No 29781, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: J24 J61 (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-eur, nep-mig and nep-ure
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