Labour market entry and integration of refugees in Austria

Abstract

Purpose This paper examines the labour market entry and integration of refugees and other (nonhumanitarian) migrants from middle- and low-income non-European countries who arrived in Austria between 2014 and 2016. Design/methodology/approach Using rich administrative data that track the complete population of these migrant groups, we analyse the factors shaping their transition into and out of the first job in Austria, describe the characteristics of their initial employment, and assess job stability over time. The longitudinal nature of the dataset allows us to follow individuals' employment trajectories comprehensively from arrival until 2021. Findings Although refugees took longer to obtain their first job, individual, household, and local labour market characteristics influenced their transition to employment in similar ways as for other migrants. Refugees and other migrants tended to enter similar job types, predominantly in low-wage segments. However, other migrants retained their first job for a longer period. While other migrants exited marginal employment relatively quickly, refugees often remained in marginal jobs as long as in full-time or part-time positions. Entry into higher-quality jobs (i.e. full-time employment) was associated with greater job stability, whereas entry into marginal jobs was linked to job instability, particularly among refugees. Originality/value The study goes beyond existing research that mainly measures refugee integration through employment rates. Leveraging comprehensive administrative micro-level data, it highlights the importance of the first job in shaping refugees' subsequent labour market trajectories and long-term employment outcomes in Austria.