Many European countries impose employment bans that prevent asylum seekers from entering the local labor market for a certain waiting period upon arrival. We provide evidence on the long-term effects of these employment bans on the subsequent economic integration of refugees. We leverage a natural experiment in Germany, where a court ruling prompted a reduction in the length of the employment ban. We find that, 5 years after the waiting period was reduced, employment rates were about 20 percentage points lower for refugees who, upon arrival, had to wait for an additional 7 months before they were allowed to enter the labor market. It took up to 10 years for this employment gap to disappear. Our findings suggest that longer employment bans considerably slowed down the economic integration of refugees and reduced their motivation to integrate early on after arrival. A marginal social cost analysis for the study sample suggests that this employment ban cost German taxpayers about 40 million euros per year, on average, in terms of welfare expenditures and foregone tax revenues from unemployed refugees.

The United States operates the world’s largest refugee resettlement program. However, there is almost no systematic evidence on whether refugees successfully integrate into American society over the long run. We address this gap by drawing on linked administrative data to directly measure a long-term integration outcome: naturalization rates. Assessing the full population of refugees resettled between 2000 and 2010, we find that refugees naturalize at high rates: 66% achieved citizenship by 2015. This rate is substantially higher than among other immigrants who became eligible for citizenship during the same period. We also find significant heterogeneity in naturalization rates. Consistent with the literature on immigration more generally, sociodemographic characteristics condition the likelihood of naturalization. Women, refugees with longer residency, and those with higher education levels are more likely to obtain citizenship. National origins also matter. While refugees from Iran, Iraq, and Somalia naturalize at higher rates, those from Burma, Ukraine, Vietnam, and Liberia naturalize at lower rates. We also find naturalization success is significantly shaped by the initial resettlement location. Placing refugees in areas that are urban, have lower rates of unemployment, and have a larger share of conationals increases the likelihood of acquiring citizenship. These findings suggest pathways to promote refugee integration by targeting interventions and by optimizing the geographic placement of refugees.

Abstract: The goal of the present paper is to examine how the expansion of the economy from 2000 has affected rural off-farm labor market participation. Specifically, we seek to determine whether off-farm labor increased after 2000, what forms of employment are driving trends in off-farm labor and whether gender differences can be observed in off farm employment trends. Using a nationally representative dataset that consist of two waves of surveys conducted in 2000 and 2008 in six provinces, this paper finds that off farm labor market participation continued to rise steadily in the early 2000s. However, there is a clear difference in the trends associated with occupational choice before and after 2000. In addition, we find that rural off-farm employment trends are different for men and women. Our analysis also shows that the rise of wage-earning employment corresponds with an increasing unskilled wage for both men and women.

The development community has increased its focus on higher education over the past two decades, recognizing that education can contribute to building up a country’s capacity for participation in an increasingly knowledge-based world economy and accelerate economic growth. The value added by higher education to economies—job creation, innovation, enhanced entrepreneurship, and research, a core higher education activity—has been highlighted by an important body of literature. 

Yet experts remain concerned that investing in higher education in less-developed countries may lead to a “brain drain”--highly educated students and professionals permanently leaving their home countries. In the 2016 Kauffman report on international science, technology, engineering, and math (STEM) students in the United States, for instance, 48 percent among a randomly sampled survey of 2,322 foreign doctoral students in the United States wished to stay there after graduation, with only 12 percent wanting to leave and 40.5 percent being undecided. In fact, high percentages of foreign students in the United States with doctorates in science and engineering continue to stay in the United States, creating a brain drain problem for the sending countries. 

Because students tend to move from developing to developed countries to study, brain drain is more problematic for developing countries. In addition, given accelerated talent flows around the world and the increasing integration of less-developed countries into global value chains, the negative impact of brain drain could be further amplified. As demonstrated by the studies reviewed in this paper, the migration of high-skilled professionals from developing countries may indeed create brain drain for them, but at the same time can significantly enhance the social and economic development of their home countries, regardless of whether or not they decide to return home, thus complicating what used to be seen as a straightforward case of brain drain. 

From Brain Drain to Brain Circulation and Linkage examines how brain drain can contribute to development for the sending countries through brain circulation and linkage. It provides an overview of the conceptual framework to map out high-skilled labor flows, identifies empirical cases and policies in Asia that demonstrate high-skilled migrant professionals actually make significant contributions to their home countries (beyond monetary remittances), summarizes key social and economic enabling factors that are important in attracting and motivating migrant high-skilled professionals to return or engage with their home countries, and concludes with policy implications and suggestions for further research based on these findings.