Residency Restrictions and Their Consequences for the Well-Being of Refugees in Germany

Individuals seeking protection in Germany are geographically distributed by authorities after their arrival. In the assigned region they are obliged to live in reception centers and shared accommodations until the asylum procedure has been completed. Originally, residential restrictions were lifted once a protection status was granted. However, since the so-called Integration Act came into force on the 6th of August 2016, freedom of movement is restricted further and refugees can be subject to a residency restriction for additional three years after they were granted protection. Depending on the federal state they live in, this restriction can be as narrowly as on the district or municipality level. This paper investigates how residency restrictions affect the subjective well-being of refugees. It is hypothesized that for example through feelings of exclusion or disenfranchisement residency restriction can have an impact on health outcomes.

The paper relies on the IAB-BAMF-SOEP Survey of Refugees and methodologically employs an instrumental variable approach where the timing of being granted protection status (pre or post the reform) is used as an instrument. Additionally, the paper leverages the distribution of refugees across Germany upon arrival and state-level variations in implementing the restrictions.

With the paper, a more precise understanding of the factors that can influence refugee well-being in the host country and of the extensive effects of limiting the spatial mobility of individuals is enabled. Since health is a basic prerequisite for labor market participation, ways of how the holistic integration of refugees into the labor market and society can be improved will become apparent.