Refugee Integration Efforts and Employers’ Hiring Preferences: Evidence from Conjoint Experiments Among Public and Private Sector Employers in the Netherlands

Policymakers have introduced various integration programs, such as language courses, credential verification, and on-the-job training, to address refugees' labor market challenges. However, refugees’ labor market participation remains low, raising the question: do employers value refugees' participation in these programs, and does this influence their hiring preferences?

The public sector is often viewed as providing more equal employment opportunities than the private sector but typically applies more stringent meritocratic criteria, particularly regarding qualifications. As a result, refugees' participation in integration activities such as language certification or credential recognition might be more highly valued in public sector hiring than in the private sector. Despite these differences, little research has examined this topic.

Using a conjoint survey experiment of 641 public and private sector employers in the Netherlands, we assess employers' perceptions of refugees' participation in integration activities, including credential validation, language certification, internships and volunteering. Our findings reveal that credential recognition and completion of a one-month internship significantly increase the likelihood of refugee applicants being invited for an interview, in both public and private sectors. However, while participation in a one-month internship and obtaining a language certificate boosts the chances of receiving further training in the public sector, this effect is not observed in the private sector. This result highlights that public sector reliance on closure mechanisms may limit refugees' upward mobility after initial hiring.

This study provides critical insights into sectoral differences in refugee employment, offering valuable guidance for designing more equitable public sector hiring processes.