The Impact of Migration and Integration Policies on Migrant-Native Labor Market Hierarchies

Martin Guzi , Masaryk University
Martin Kahanec, CEU
Lucia Mýtna Kureková, Slovak Academy of Sciences

The understanding of how institutional and policy contexts affect immigrant integration is essential for any effort to foster a sustainable and effective migration and integration policy framework. Immigrant-native labor market gaps may arise due to differences in human capital or other socio-economic and demographic characteristics, but also due to differentiated impacts of institutions and policies on otherwise similar immigrants and natives. Different integration policy approaches are needed to close the gaps arising through these different mechanisms. This paper exploits the variation across Europe to study the migrant integration policy determinants of immigrant-native gaps in host labor markets. Using the EU Labor Source Survey as the primary source of data and a novel analytical approach we study immigrant-native gaps in labor force participation, unemployment, low-skilled employment and temporary employment. Findings suggest that the liberalization of immigration policies (i.e. policies promoting legal entry and stay), results in better labor market access for migrants from non-EU countries and improve migrants’ prospects of having permanent employment. Results further imply that inclusionary policy changes improve immigrant access to labor market and the quality of employment. The immigrant inclusion in welfare arrangements seem to help migrants to find high skilled employment and reduce their risk of unemployment. These observations may serve as guidance to countries when making future policy decisions in the area of migrant integration.

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 Presented in Session P1. Postercafe