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21. 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

22. 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

23. 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

24. Monopsony, Efficiency, and the Regularization of Undocumented Immigrants

Author:
George J. Borjas and Anthony Edo
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
In May 1981, President François Mitterrand regularized the status of undocumented immigrant workers in France. The newly legalized immigrants represented 12 percent of the non-French workforce and about 1 percent of all workers. Employers have monopsony power over undocumented workers because the undocumented may find it costly to participate in the open labor market and have restricted economic opportunities. By alleviating this labor market imperfection, a regularization program can move the market closer to the efficient competitive equilibrium and potentially increase employment and wages for both the newly legalized and the authorized workforce. Our empirical analysis reveals that the Mitterrand regularization program particularly increased employment and wages for low-skill native and immigrant men, and raised French GDP by over 1 percent.
Topic:
Immigrants, Labor Market, Undocumented Population, Monopsony, and Regularization
Political Geography:
Europe, France, and Global Focus

25. Demography, Capital Accumulation and Growth

Author:
Robert Stehrer and Maryna Tverdostup
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Europe will be challenged by demographic changes over the next few decades, even under favourable assumptions about fertility and migration, but the economic effects are not yet fully understood. This paper studies the effects of population ageing on economic growth, capital deepening and robotisation in 27 European Union (EU) labour markets. First, we econometrically assess the effects of ageing and potential labour market shortages on growth. Second, we test the hypothesis of whether ageing leads to faster adoption of new technologies. We distinguish between various capital asset types, including non-ICT and ICT capital, tangible and intangible capital and the adoption of robots. The analysis is based on Eurostat, the European Labour Force Survey (EU-LFS) and International Federation of Robotics (IFR) data. Results indicate that ageing and demographic changes might contribute to secular stagnation, which decelerates the adoption of new technologies.
Topic:
Science and Technology, European Union, Economic Growth, Macroeconomics, Aging, Labor Market, and Capital Accumulation
Political Geography:
Europe

26. Different Choices, Divergent Paths: Poland and Ukraine

Author:
Thorvaldur Gylfason, Eduard Hochreiter, and Tadeusz Kowalski
Publication Date:
12-2022
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
We compare the economic growth trajectories of Poland and Ukraine since 1990 to try to understand the extent to which the observed growth differentials can be traced to increased efficiency in the use of capital and other factors (intensive growth), rather than to simple accumulation of capital (extensive growth). We stress the role of qualitative factors such as education, governance and institutions. We ask whether the EU perspective and NATO membership played a role. We discuss the closely related histories of the two countries and note the stark differences between them, including their different approaches to the EU vs Russia, full vs incomplete transition to a market economy, and democracy vs anocracy, as well as different initial conditions. We compare key determinants of growth and growth trajectories, using economic as well as social indicators, and trying to disentangle efficiency and accumulation and combine path dependence and the role and scope of creative destruction. While Poland had the shortest and mildest transformation recession among CEE countries, Ukraine has been stagnant, or in decline, since 1990. The statistics we report and the stories we tell suggest that both countries have a complex relationship with democracy and that the nearly threefold difference in per capita GDP at PPP in 2021 in Poland’s favour, with the ratio of investment to GDP similar in both countries, can most plausibly be traced to: (a) Poland’s more extensive and diversified exports, and fewer restrictions on trade, in addition to more comprehensive and quicker restructuring of the national economy inspired by the EU perspective; (b) Poland’s more extensive and better-quality education; (c) Poland’s greater democracy and longer experience of democracy, lower levels of corruption, better governance, and freer press; (d) Poland’s smaller agricultural sector and greater emphasis on manufacturing; and (e) Poland’s lower inflation and higher level of financial development. Furthermore, Poland built market-friendly institutions to EU specifications and joined NATO. Against all this, Ukraine had more economic equality and lower unemployment as well as, from the early 1990s, a lower initial level of income per person, but was hampered by political divisions, path-dependent corruption and poor governance. During the global Covid-19 pandemic, Ukraine apparently suffered fewer deaths than Poland, despite fewer vaccinations.
Topic:
Economics, Education, Governance, Reform, European Union, Economic Growth, Inflation, Exports, Transition, and Labor Market
Political Geography:
Europe, Ukraine, and Poland

27. How do Economies in EU-CEE Cope with Labour Shortages?

Author:
Vasily Astrov, Richard Grieveson, Doris Hanzl-Weiss, Sebastian Leitner, Isilda Mara, Hermine Vidovic, and Zuzana Zavarská
Publication Date:
11-2022
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The EU member states in Central and Eastern Europe (EU-CEE) have been experiencing increasing labour shortages, which only briefly subsided in the wake of the COVID-19 pandemic. Ongoing demographic decline suggests that labour shortages will only get stronger over time. As a result, the bargaining power of labour has increased, wages have been generally rising ahead of labour productivity, and industrial action (strikes) – the level of which has remained low in recent decades – has emerged in some instances. In the face of labour and skill shortages, people have been investing in education. The share of employees with tertiary education has increased, and vocational training has gained in importance, although active labour market policies have been used only selectively. Employers have increasingly been investing in fixed assets, especially in manufacturing, and the degree of robotisation has risen strongly. Despite domestic concerns that automation would generate massive job losses, our findings suggest that capital deepening has taken place faster where labour was in higher demand. Thus, labour was not substituted with capital, but rather the complementary effect prevailed. Employment actually increased in EU-CEE over the past two decades – despite the shrinking working-age population. Employers could hire not only the formerly unemployed, but also the formerly inactive, and used the relaxed immigration policies to attract foreign workers, especially from Ukraine and the Western Balkans. Czechia, Hungary, Slovenia and Slovakia and most recently Poland have become net receivers of migrants, while in Bulgaria immigration largely compensates for the natives who go abroad. However, immigration from non-European countries as a general solution to the problem of labour shortages in the region is highly problematic in the current domestic political context. Overall, both our findings for the EU-CEE region over recent years and the experience of Western Europe during the ‘golden age’ (1950-1973) suggest that labour shortages are not in themselves an obstacle to rapid structural change and income growth. However, for such an economic model to be sustainable, more active government policies will be needed, such as greater public investment in education and training, higher minimum wages in order to encourage automation, and more extensive welfare networks in order to deal with the possible negative short-run side-effects of automation.
Topic:
Migration, Labor Issues, European Union, Populism, Vocational Training, Investment, Labor Market, Trade Unions, and Immigration Policy
Political Geography:
Europe

28. From Fear to Solidarity: The Difficulty in Shifting Public Narratives about Refugees

Author:
Natalia Banulescu-Bogdan
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
Refugees and asylum seekers are alternatively depicted as heroes or security threats, victims or exceptional workers, exemplary neighbors or opportunists. And though public narratives are sometimes described as a binary, in reality, people can hold multiple, competing beliefs and opinions about forced migration and its impacts on society. They may, for example, experience pride in their country’s humanitarian response and compassion for refugees alongside anxiety over changing cultural norms or fear of competition for scarce jobs, each of which can become more or less salient under different circumstances. These public attitudes can create or constrain the space needed for sensible and creative policy responses, as well as community cohesion. As a result, governments, international organizations, and advocates have invested in myriad programs and campaigns to bolster solidarity and defuse negative reactions to forced migrants. Yet, as this study discusses, changing people’s minds is far from straightforward. This report—the first in the Beyond Territorial Asylum: Making Protection Work in a Bordered World initiative led by MPI and the Robert Bosch Stiftung—examines the different narratives that tend to emerge in communities welcoming forced migrants, looking at a variety of geographic, socioeconomic, and historical contexts. It also explores two categories of interventions that aim to address negative narratives about refugees and asylum seekers: information campaigns that aim to defuse threat narratives and “contact-building” initiatives that seek to build connections between refugees and host communities. The report concludes by offering strategies to promote solidarity and mitigate tensions.
Topic:
Immigration, Employment, Refugees, Economy, Asylum, Integration, Social Cohesion, COVID-19, and Labor Market
Political Geography:
Europe

29. Istanbul Journal of Economics: Volume 72 Issue 2

Author:
Gökhan Karabulut
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Economics, Islam, Religion, Communications, Natural Resources, Finance, Internet, Economic Growth, Macroeconomics, Currency, Unemployment, Sustainability, COVID-19, BRICS, Labor Market, Economic Stability, Consumer Behavior, Rent-seeking, Energy, and Wages
Political Geography:
Europe, Turkey, and Asia

30. Is the workforce ready for the jobs of the future? Data-informed skills and training foresight

Author:
Fabian Stephany and Rosemary Luckin
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
For many newly emerging jobs, labour-market mismatches prevail as workers and firms are unable to apply precise occupation taxonomies and training lags behind workforce needs. We report on how data can enable useful foresight about skill requirements and training needs, even when that data has not been collected for this express purpose. First, we show how online generated freelance data can help monitor labour-market developments in the short run. Second, in the long run, we illustrate how data can shed light on development of workplace-ready aptitudes among students, even when these are not the direct focus of instruction. This combination of data-intensive activities can inform the immediate and long-term needs for education and training in order to help individuals develop the ability to learn, train and retrain as often and as much as needed.
Topic:
Business, Training, Data, Labor Market, Workforce, and Skills
Political Geography:
Europe and Global Focus