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    Rights statement: This is the author’s version of a work that was accepted for publication in European Economic Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Economic Review, 111, 2019 DOI: 10.1016/j.euroecorev.2018.10.001

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The labor market integration of refugees in the United States: do entrepreneurs in the network help?

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Article number111
<mark>Journal publication date</mark>1/01/2019
<mark>Journal</mark>European Economic Review
Volume111
Number of pages16
Pages (from-to)257-272
Publication statusPublished
Early online date24/10/18
Original languageEnglish

Abstract

We investigate whether entrepreneurs in the network of refugees – from the same country of origin – help refugees enter the labor market by hiring them. We analyze the universe of refugee cases without U.S. ties who were resettled in the United States between 2005 and 2010. We address threats to identification due to refugees sorting into specific labor markets and to strategic placement by resettlement agencies. We find that the probability that refugees are employed 90 days after arrival is positively affected by the number of business owners in their network, but negatively affected by the number of those who are employees. This suggests that network members who are entrepreneurs hire refugees, while network members working as employees compete with them, which is consistent
with refugees complementing the former and substituting for the latter.

Bibliographic note

This is the author’s version of a work that was accepted for publication in European Economic Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Economic Review, 111, 2019 DOI: 10.1016/j.euroecorev.2018.10.001