The Labor Market Effect Of Refugees In European Host Countries

Forced displacement refers to migration of people who have been forced to flee their homes as a consequence of armed conflict, violations of human rights or natural or human-made disasters. A growing body of literature focuses on the labor market effects of forced displacement, setting it apart from economic migration. Theoretical labor market framework suggests that in the short-run, refugees would have a negative impact on natives’ wages and employment, but in the long-run both would return to their initial level. The empirical evidence differs depending on the country studied and methodology used. This review examines how the refugees arriving to Europe impact the natives’ labor market outcomes