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The Evils of Forced Migration: Do Integration Policies Alleviate Migrants' Economic Situations?Oliver FalckCESifo (Center for Economic Studies and Ifo Institute for Economic Research) - Department Human Capital and Innovation Stephan HeblichUniversity of Stirling - Department of Economics Susanne LinkCESifo (Center for Economic Studies and Ifo Institute for Economic Research) - Ifo Institute for Economic Research; Ludwig-Maximilians-Universität Munich IZA Discussion Paper No. 5829 Abstract: Armed conflicts, natural disasters and infrastructure projects continue to force millions into migration. This is especially true for developing countries. After World War II, about 8 million ethnic Germans experienced a similar situation when forced to leave their homelands and settle within the new borders of West Germany. Subsequently, a law was introduced to foster their labor market integration. We evaluate the success of this law using unique retrospective individual-level panel data. We find that the law improved expellees' overall situation but failed to restore their pre-war occupation status. This holds implications for the design of integration policies today.
Number of Pages in PDF File: 33 Keywords: forced migration, integration policy, difference-in-differences, Germany JEL Classification: N30, J61, D04 working papers seriesDate posted: July 11, 2011Suggested CitationContact Information
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