Trajectories of Employment Gaps of Refugees and Other Migrants: Evidence from Austria

This paper analyzes the labor market integration of non-European refugees originating from middle- and low-income countries for the period of 2009–2018 in Austria. We assess their probability of being employed relative to Austrian natives and compare it with that of other non-European migrants and European refugees and other immigrants from low- and middle-income non-EU countries. We draw on a register-based panel dataset covering the complete labor market careers of all individuals residing in Austria. We control for macrolevel explanatory variables (e.g., the labor market situation at the time and the place of settlement) and individual characteristics. The analysis shows that initial refugee employment gaps relative to natives are large in the first years, when labor market access is difficult. After a period of 7 years, the unconditional gap between refugees and natives declines to 30 percentage points, similar to that of other migrants, but the gap is still decreasing. After controlling for a set of explanatory variables, the conditional gap amounts to only 10 percentage points at that time. Moreover, our analysis provides insights into differences in employment gaps across population subgroups of immigrant groups and natives by gender, age, education level, and types of employment.

     

Basic relationships between human capital,migration and labour markets in the Western Balkans: An econometric investigation

The high outward mobility that characterises the countries in the Western Balkan region—already for three decades—is often seen as tightly linked to labour market imbalances and persistently low utilisation of human capital over time. To shed light on these issues we analysed the effects of labour market determinants and human capital endowment on migration and vice versa by estimating simultaneously a system of equations that accounted for such relationships in the context of WB countries. The period under analysis is 2007–2019 and the destination countries are the EU15. The empirical results confirm the importance of wage gaps and their changes as an important pull factor for driving emigration. In addition, gaps in human capital emerge as a powerful determinant for explaining emigration into countries where returns to human capital are relatively higher.