Economic Integration of Refugees in Germany - a Question of the Institutional Framework
To test this assumption, first, the paper aims at explaining which groups decide to get their educational certificates recognized. We assume that this decision is mainly driven by the residence title the refugee is granted. Second, we test if a recognition of certificates helps refugees to get access to the labor market and a job matching their education. Third, we analyze if recognized certificates help to generate superior outcomes in respect of gross-income. With this approach we are able to paint a broad picture of labor market access and selection mechanisms.
The analyzed data is the IAB-BAMF-SOEP Refugee Survey which is representative for all people that applied for asylum between January 1st 2013 and January 31st 2016 in Germany. In order to avoid endogeneity we restricted the sample to people that are between 18 and 65 years old, hold a title that allows to work, and live in Germany longer than 3 months.
First analysis suggests that the institutional framework is crucial for labor market integration. Those that are granted a safe status invest in labor market integration, such as recognition of certificates. In turn, recognized certificates help by increasing the chances of employment in general and avoiding an education-occupation mismatch. This in turn provides higher income.