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The dynamic impact of refugee immigration on native workers

Katia Gallegos Torres and Katrin Sommerfeld

No 25-058, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We study how low and medium-skilled refugee immigration affects natives' labor market outcomes. Using individual-level panel data on the German workforce for 2011-2019 and exogenous regional variation from processing authorities' distances, we find that a larger inflow of refugees to a district increases the probability of full-time employment for incumbent workers. Fewer outflows of employment drive this effect. The yearly estimates suggest positive labor demand responses in the short run - in occupations that supply services to the refugees - and positive labor supply effects in the medium run - in manufacturing occupations. Wages, job task composition, and job changes remain unaffected, though positive mobility responses are observed.

Keywords: refugee migration; labor market outcomes; complementarities (search for similar items in EconPapers)
JEL-codes: J15 J21 J31 J61 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-lab
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