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Refugees' Economic Integration

Dany Bahar, Rebecca Brough, Giovanni Peri

Journal of Economic Literature Forthcoming
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Key Findings

  • Refugees who receive work permits within the first year show significantly better long-term employment outcomes
  • Language training combined with job placement programs accelerates economic integration by 2-3 years
  • Second-generation refugees often outperform children of native-born parents in educational attainment
  • Initial labor market access matters more than welfare support for long-term economic self-sufficiency

About This Research

How do refugees fare economically in their host countries, and what policies help or hinder their integration? This comprehensive review synthesizes decades of research on refugee economic outcomes across different contexts, from labor market participation to entrepreneurship and long-term economic mobility.

We examine the key factors that shape integration trajectories, including legal status, language acquisition, recognition of credentials, and access to social services. The evidence reveals that while refugees often face initial disadvantages compared to other migrants, many achieve economic parity over time—particularly when given early access to the labor market.

The paper identifies policy lessons from successful integration programs worldwide, highlighting the importance of early intervention, skills matching, and removing bureaucratic barriers to employment. Our findings challenge common misconceptions about refugee economic contributions and provide an evidence-based framework for designing more effective integration policies.

refugees integration labor markets