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When lives are put on hold: Lengthy asylum processes decrease employment among refugees.

Jens Hainmueller1, Dominik Hangartner2, Duncan Lawrence3

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PubMed
Summary
This summary is machine-generated.

Longer asylum waiting times significantly reduce refugee employment rates by up to 23%. This study highlights how policy changes in asylum processing can improve refugee economic integration and reduce public spending.

Keywords:
Asylum policyemploymentimmigrationintegrationrefugee

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Area of Science:

  • Economics
  • Sociology
  • Public Policy

Background:

  • European governments face unprecedented refugee crises.
  • Limited evidence exists on how asylum process management impacts refugee integration.
  • The duration of asylum claim processing is a key policy parameter.

Purpose of the Study:

  • To provide causal evidence on the impact of asylum waiting times on refugee economic integration.
  • To analyze the effect of policy parameters within the asylum process.
  • To inform policy decisions aimed at improving refugee outcomes.

Main Methods:

  • Utilized exogenous variation in asylum claim waiting times.
  • Employed registry panel data for refugees in Switzerland (1994-2004).
  • Conducted subgroup analysis across gender, origin, age, and language region.

Main Results:

  • An additional year of waiting reduces employment rates by 4-5 percentage points (16-23% drop).
  • This negative effect is consistent across diverse refugee subgroups.
  • Psychological discouragement, not skill atrophy, appears to be the primary mechanism.

Conclusions:

  • Reducing asylum waiting periods can significantly boost refugee employment.
  • Policy interventions can unlock the economic potential of refugees.
  • Shortening asylum processes may decrease public expenditures and enhance societal integration.