Economic Outcomes of Immigrants with Different Migration Motives: The Role of Labour Market Policies

This paper studies the role of labour market policies for economic outcomes of immigrants with different migration motives. Using two recent European Union Labour Force Surveys ad hoc modules and applying country fixed-effects models, we examine if labour market policies can alleviate the economic disadvantage of family reunification and refugee immigrants in comparison to economic immigrants. In line with previous studies, we find that even after controlling for differences in human capital and socio-demographic characteristics, family reunification, and particularly refugee immigrants have considerably lower labour force participation and employment rates, and when employed, work fewer hours and have a lower occupational status than economic immigrants. However, we also find that the economic disadvantage of family reunification and refugee immigrants is significantly smaller in countries with more extensive labour market policies. These findings hold for the overall labour market mobility index as well as its specific sub-dimensions: general and targeted support and workers' rights.