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1. The Path Through: Early COVID-19 Job Loss and Labour Market Trajectories in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the socio-demographic disparities evident in the early labour market response to the COVID-19 pandemic in Austria, relying on the register-based labour market career dataset from the Austrian Micro Data Center (AMDC) for the 2018-2021 period. The analysis focuses on the divergences in out-of-unemployment transitions and medium-term employment stability among those who lost their jobs early in the pandemic in contrast to the group of the longer-term unemployed. We document that individuals affected by job loss during the initial phases of the pandemic did not exhibit enduring scarring effects. Unlike their longer-term unemployed counterparts, they did not demonstrate persistent labour market detachment, prolonged periods of unemployment or a diminished success rate in re-employment. However, certain socio-demographic cohorts – notably, women, parents with two or more young children, and individuals with lower levels of education – faced disproportionate challenges during the pandemic. They were more inclined to transition into precarious employment arrangements and experienced lower levels of employment stability in the months following re-employment.
Topic:
Employment, Inequality, Unemployment, COVID-19, Labor Market, and Gender
Political Geography:
Europe and Austria

2. The Labour Market Entry and Integration of Refugees and Other Migrants in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the labour market entry of refugees and other (non-humanitarian) migrants originating from middle- and low-income non-European countries that arrived in Austria in 2014-2016. Specifically, we analyse factors that shaped the transition to and out of the first job in the Austrian labour market, document the characteristics of the first job and explore job stability in Austria. Even though refugees took longer to find a job, individual and household characteristics, as well as labour market indicators, are associated with the time between arrival and the first job in Austria, similar to other migrants. Refugees and other migrants also found similar job types as their entry jobs, which tended to be located in low-wage segments. The results, however, suggest that other migrants held their first job, on average, for a longer time than refugees. Although other migrants quit their first job relatively quickly when it was marginal employment, refugees tended to hold marginal jobs as long as full-time and part-time jobs. Finally, our results suggest that entry jobs with a higher quality in terms of working hours and wages (i.e. full-time jobs) tended to be linked with job stability, while entry jobs with a lower quality (i.e. marginal jobs) tended to be associated with job instability for both refugees and other migrants. The results of the paper showcase the importance of immediate access to various training and re-education programs for refugees to improve the quality of their entry jobs and their long-term prospects in the Austrian labour market.
Topic:
Migration, Refugees, Labor Market, Economic Integration, and Jobs
Political Geography:
Europe and Austria

3. Occupational Trajectories Among Refugees in Austria: The Role of Co-ethnic and Austrian Social Networks in Job Search

Author:
Sandra Leitner
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses occupational trajectories of refugees from their last job in the home country to their first and current jobs in Austria and the role of co-ethnic and Austrian social networks in job search, using data from a large-scale survey of recognised refugees from Syria, Afghanistan, Iraq and Iran who have predominantly come to Austria since 2010, thereby covering the strong refugee wave of 2015 2016. The results corroborate a U-shaped pattern, with a sharp initial occupational loss followed by a rather moderate occupational recovery. Although native social networks play no role for occupational changes, co-ethnic social networks – particularly when used as a stand-alone job search strategy – prove detrimental along the entire trajectory. However, co-ethnic social networks are beneficial if used in combination with the Austrian labour market service or NGOs. Some refugees prove particularly vulnerable, such as older refugees or highly educated refugees who undergo more pronounced initial occupational downgrading, with subsequent occupational upgrading either limited or absent.
Topic:
Migration, Refugees, Integration, Social Capital, and Labor Market
Political Geography:
Europe and Austria

4. Development of Mental Distress of Refugees in Austria During their Economic and Social Integration in 2017-2022

Author:
Sebastian Leitner
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Refugees are more likely to develop mental diseases as most of them have been exposed to potentially traumatic events and fundamental stressors in their home countries, during migration and after resettling in the host countries. This diminishes their prospects for social and economic integration, which also may have detrimental effects on their mental health. We examine the prevalence of mental disorders in the refugee population from Afghanistan, Iraq, Iran and Syria who arrived in Austria recently, drawing on data from four waves of the FIMAS refugee survey project. Interviews were conducted between December 2017 and April 2022 in Austria, with a specific focus on Vienna, Salzburg, Graz, Linz and Innsbruck. We found a high share of refugees (31% in 2017/2018, declining to 26% in 2022) who showed moderate or severe levels of mental distress. Women were found to have a significantly higher risk of mental illness. We also investigate the effects of mediators on mental health, applying pooled and panel regression model. A positive association was found, for example, in the cases of discrimination experienced in Austria and obviously potentially traumatic events experienced during migration. Negative correlations were detected for certain mitigating factors that foster resilience, such as proficiency in the German language, living in the same household with one’s partner and children, being employed, having more supportive relationships, and being more satisfied with the housing situation.
Topic:
Refugees, Mental Health, Integration, Labor Market, and Social Integration
Political Geography:
Europe and Austria

5. Labour Market Integration Programmes for Refugees in Austria: Do they Really Work and for Whom?

Author:
Isilda Mara
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this study, we evaluate the effectiveness of the participation of refugees in integration programmes intended to help them gain employment. The specific programmes considered are the Competence Check programme and the Integration Year programme that were introduced in Austria around the time of the 2015 crisis, when refugees poured from the Middle East into the EU. The study is based on the fourth and fifth waves of a survey (FIMAS) of refugees from Afghanistan, Iraq, Iran and Syria in Austria, and it uses matching models to evaluate the effects on employment of participation in those two programmes. More specifically, it applies multivariate matching methods that ensure better balancing properties between the control and the treated groups. We find especially positive effects of the programmes on the employability of women, the poorly educated, younger and older age cohorts. These programmes thus seem to work specifically for those that find themselves in a more vulnerable labour market situation.
Topic:
Refugees, Integration, Labor Market, and Matching Methods
Political Geography:
Europe and Austria

6. Employers’ Skills Requirements in the Austrian Labour Market: On the Relative Importance of ICT, Cognitive and Non-cognitive Skills over the Past 15 Years

Author:
Sandra Leitner and Oliver Reiter
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses job advertisements to identify the particular skills, abilities and characteristics that are in demand on the Austrian labour market. It takes a novel approach and uses information extracted from over 1.5 million job advertisements over the past 15 years from Austria’s largest online job portal, karriere.at, to shed light on employers’ skills needs and the relative importance of, and demand for, different skill types over time. It develops a taxonomy which classifies observable skills into information and communications technology (ICT) skills (which are of increasing importance as a result of the ongoing digital revolution), cognitive skills, cognitively based skills and non-cognitive (soft) skills; but it also takes into account other factors that frequently appear in job advertisements, such as previous work experience, physical appearance, and the willingness to travel, work overtime, weekends or shifts, among others. It shows that Austrian employers are quite demanding: cognitive skills, previous work experience and ICT skills were the three most frequent requirements, appearing in (almost) every second job advertisement in 2019. Over the years, these categories have also become increasingly important to employers. Among cognitively based skills, language skills were the most important, also appearing in every second job advertisement. The ability to work as part of a team, communication skills, independence, flexibility and accuracy were the top five non-cognitive (soft) skills demanded by employers.
Topic:
Economics, International Political Economy, Communications, Labor Issues, Employment, Labor Market, Skilled Labor, and Informal Economy
Political Geography:
Austria

7. Employment Gaps Between Refugees, Migrants and Natives: Evidence from Austrian Register Based Labour Market Data

Author:
Stefan Jestl, Michael Landesmann, Sebastian Leitner, and Barbara Wanek-Zajic
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses labour market integration in Austria of non-European refugees originating from middle and low income countries for the period 2009-2018. We assess their probability of being employed in comparison to non-humanitarian migrants, European third country immigrants and natives. We draw on a register based panel dataset covering the complete labour market careers of all individuals residing in Austria. We control for macro level explanatory variables (e.g. the labour market situation at the time and the place of settlement) and individual characteristics. The analysis shows that initial refugee employment gaps are large in the first years when labour market access is difficult. After a period of seven years the unconditional gap between refugees and natives declines to 30 percentage points, similar to the one of non-humanitarian migrants, but the gap is still further decreasing. After controlling for a set of additional explanatory variables, the conditional gap amounts to only 10 percentage points at the same time. Moreover, our analysis provides insights into differences between employment gaps across population subgroups of immigrant groups and natives by gender, age and education level.
Topic:
Employment, Refugees, Labor Market, Migrants, and Income Distribution
Political Geography:
Europe and Austria

8. Various Domains of Integration of Refugees and their Interrelationships: A Study of Recent Refugee Inflows in Austria

Author:
Michael Landesmann and Sandra Leitner
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper addresses the complexity of, and the interrelationships between, two important aspects of integration of refugees in Austria, namely labour market integration and social integration. While labour market integration is captured in terms of being employed as compared to being unemployed or inactive, social integration distinguishes between social networks and their ethnic composition and social capital. It identifies the key determinants of each of these domains of integration and investigates the direction as well as the size of interdependencies among them. The analysis uses a unique dataset built on the basis of a survey of about 1,600 refugees from Syria, Iraq, Afghanistan and Iran who had come to Austria since 2010. The analysis establishes an important causal link between social integration and labour market integration (i.e. employment). Both social network effects with Austrians as well as with co-ethnics are important in this context but the former is more powerful than the latter. It shows that both education and length of stay are key determinants of successful labour market integration. Furthermore, tests regarding the relevance of language command for both social and labour market integration show the strong importance of speaking and understanding German, and much less so, of writing German.
Topic:
Migration, Refugees, Labor Market, and Social Integration
Political Geography:
Afghanistan, Iraq, Europe, Iran, South Asia, Middle East, Syria, and Austria

9. The Effect of Stressors and Resilience Factors on Mental Health of Recent Refugees in Austria

Author:
Isabella Buber-Ennser, Judith Kohlenberger, Michael Landesmann, Sebastian Leitner, and Bernhard Rengs
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Given the exposure to stressors in their home countries, during their migration and in the phase after arrival, refugees are particularly vulnerable to mental health problems. At the same time, their access to adequate healthcare and other social infrastructure might be hampered by factors such as lack of knowledge as well as cultural and language barriers. In addition to other factors, this reduces their ability to take part in social activities as well as their integration into the labour market of the host societies. We examine the prevalence of mental disorders in the refugee population from Afghanistan, Iraq and Syria who arrived in Austria recently, drawing on data from a refugee survey conducted between December 2017 and April 2018 in Austria with a specific focus on Vienna, Salzburg, Graz, Linz and Innsbruck (FIMAS+INTEGRATION). We found a high share of refugees (32%) to have moderate or severe mental health problems. In particular, young refugees (15-34 years) show higher risk levels. When investigating the effects of stressors on the mental health situation, we found a positive association with e.g. experienced discrimination in Austria and the fear for partners and children left behind. In contrast, the results show a negative correlation for a couple of mitigating factors that foster resilience, i.e. proficiency in the German language, being employed (including volunteer work), having more supportive relationships and satisfaction with the housing situation.
Topic:
Migration, Refugees, Mental Health, Resilience, Labor Market, and Social Integration
Political Geography:
Europe and Austria