The Economic Integration of Refugees in the UK

1. The Economic Integration of Refugees in the UK Carlos Vargas-Silva Zovanga Kone Isabel Ruiz

2. Summary This project examines the labour market and wellbeing outcomes of refugees in the UK. It aims to provide evidence that will facilitate integration interventions by civil society and government organisations at the local and national level.  

3. UK Labour Force Survey • Comprises 40,000 households and 100,000 individuals each quarter and contains rich information about individual characteristics. • Largest sample survey in the UK and it is representative of the country’s population. • Quarterly data.

4. UK Labour Force Survey(secured access) Classify the foreign born by reason for initial immigration: • Work • Study • Family-reunification • Asylum • Other

5. Sample UK-born: 279,634

6. Sample (2)

7. Sample (3)

8. Main countries of origin (% share of category) Home Office data refer to those who were granted protection between 2001-06 (main applicants)

9. Questions: • Are there differences between refugees and UK-born and refugees and other migrants? • If so, what are some of the plausible explanations for these differences?

10. What have we explored with our data?

12. Descriptive Statistics

13. Descriptive Statistics (vs UK-born)

14. Gender differences (vs UK-born)

15. Regression results…

16. Labour market outcomes: migrants vs UK-born

17. Differences with UK-born.

18. Summary of findings • Those who migrated to the UK with the intention of claiming asylum are: • 19 (12) pp less likely to be in employment than natives (those who migrated for work reasons). • Weekly earnings are 76% (43%) lower. • Earn 59% (27%) less per hour. • Work 17% (16%) fewer hours.

19. Is there convergence over time?

20. Convergence – years in the UK

21. Convergence between 2010 and 2016

22. Why would refugees have different outcomes from other migrants? • Different motivations to migrate/differences in self-selection. More evidence necessary. • Legal restrictions to access the labour market while asylum claim is being evaluated. More evidence necessary. • Waiting times for asylum decisions. More evidence necessary. • Discrimination from employers. More evidence necessary. • More likely to have experienced traumatic events that affect their mental and physical health and ability to work. There is some evidence: Giuntella el al. 2018.

24. Labour Market Related Health Outcomes We identify three outcome variables based on the following questions: • “Do you have any health problems or disabilities that you expect will last for more than a year?” • Long lasting condition • “Does this health problem affect the work you might do?” • Limitation of work types • “Does this health problem affect the amount of paid work that you might do?” • Related to limitation of work hours

25. Descriptive Statistics: prevalence of long lasting illness and activity limitation

26. vs. UK-born, in ppt

27. Differences in labour market related health outcomes

28. Differences in labour market related health outcomes: compared to UK-born (ppts)

29. Is there convergence? • We also explore whether length of residence in the UK can explain the differences in health outcomes between natives and each of the immigrant groups. • Are there any sign of convergence across groups over time?

30. Convergence as stay in the UK lengthens

31. Convergence, with Length of stay of immigrants in the UK as proportion of lifetime

32. Specific health problems • Those who report having a long lasting illness are asked to specify from the following: • Cardiovascular (including heart, blood pressure, blood circulation, other) • Respiratory (including breathing problems, asthma, bronchitis, other) • Diabetes • Mental (including phobias, panics, depression, bad nerves, anxiety, other) • Back and/or neck • Sensory (e.g. seeing, hearing, speaking, other) • Skin (severe disfigurement, skin conditions, allergies, other) • Digestive (stomach, liver, kidney, digestive, others) • Limbs (arms, hands, legs, feet, includes arthritis or rheumatism) • Epilepsy • Learning difficulties • Progressive (cancer, multiple sclerosis, symptomatic HIV, Parkinson’s disease, muscular, other)

34. vs UK-born (ppt)

36. Job search behaviour? • Earnings convergence with natives is the result of a long process, including job search methods. • Real test of labour market integration pertains to the process of job search. • The choice of method gives access to different pools of jobs. • Lead to divergent integration outcomes.

37. From previous studies • There is a literature suggesting that migrants coming via particular routes integrate faster than others. • But reasons remain largely unidentified. • Differences in job search methods might provide an explanation for this.

38. Descriptive statistics of main search methods (%)

39. vs UK-born, in ppt

40. Search methods

41. Search methods (vs UK-born), ppt

42. Is there convergence? • We also explore whether length of residence in the UK can explain the differences in outcomes between natives and each of the immigrant groups. • Are there any sign of convergence across groups over time?

43. Time in the UK

44. Can social interactions be part of the story?

45. How do they get jobs?

46. Whether main job search method is the same as search method which lead to employment

47. Moving forward …

48. Thank you! More information: www.econforced.com Funder:

49. Appendix