The Labor Market Integration of Refugees to the United States: Do Entrepreneurs in the Network Help?

48 Pages Posted: 25 Feb 2018

See all articles by Olivier Dagnelie

Olivier Dagnelie

Spanish Council for Scientific Research (CSIC) - Insitute for Economic Analysis

Anna Maria Mayda

Georgetown University - Department of Economics; IZA Institute of Labor Economics

Jean Maystadt

Lancaster University

Multiple version iconThere are 2 versions of this paper

Date Written: February 2018

Abstract

We investigate whether entrepreneurs in the network of refugees - from the same country of origin - help refugees' labor-market integration by hiring them in their businesses. We analyze the universe of refugee cases without U.S. ties who were resettled in the United States between 2005 and 2010. We address threats to identification due to sorting of refugees into specific labor markets and to strategic placement by resettlement agencies. We find that the probability that refugees are employed 90 days after arrival is positively affected by the number of business owners in their network, but negatively affected by the number of those who are employees. This suggests that network members who are entrepreneurs hire refugees in their business, while network members working as employees compete with them, consistent with refugees complementing the former and substituting for the latter.

Keywords: refugees, labor market integration, entrepreneurship

JEL Classification: F22, J61

Suggested Citation

Dagnelie, Olivier and Mayda, Anna Maria and Maystadt, Jean, The Labor Market Integration of Refugees to the United States: Do Entrepreneurs in the Network Help? (February 2018). IZA Discussion Paper No. 11343, Available at SSRN: https://ssrn.com/abstract=3129287

Olivier Dagnelie (Contact Author)

Spanish Council for Scientific Research (CSIC) - Insitute for Economic Analysis ( email )

Campus de la UAB
Bellaterra, Barcelona 08193
Spain

Anna Maria Mayda

Georgetown University - Department of Economics ( email )

Washington, DC 20057
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Jean Maystadt

Lancaster University

Lancaster LA1 4YX
United Kingdom

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