Browsing by Subject "Labour market"

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Asylum migration of Afghans and Syrians to Germany : opportunities and challenges during transit and integration
(2022) Torfa, Masooma; Birner, Regina
Refugee migration continues to receive considerable attention in the literature, primarily due to its escalating importance. According to the United Nations (UN), forced displacements in 2021 are the highest ever recorded. Since 2015, Afghans and Syrians have been the two largest internationally displaced populations, not only globally, but also within the European Union (EU). In the last seven years, the number of Afghans applying for asylum in Europe has continued to rise despite the EU’s efforts to discourage them. There are major knowledge gaps in the literature with regard to the experiences of migration from the perspective of the refugees themselves and about the driving factors and actors behind fragmented migration journeys. There is also limited literature on Afghan refugees, even though they constitute the second-largest nationality in asylum migration to Europe. Moreover, there are knowledge gaps on the role that different actors, particularly private companies, play for refugees’ integration in the receiving societies. Addressing these knowledge gaps, the research objectives of this thesis were (1) to explore the trajectories of fragmented migration undertaken by Afghan and Syrian refugees to Germany; (2) to better understand the opportunities and challenges of their adaptation to new societies; and (3) to explore the role of private companies in integrating refugees into the labour market. This dissertation uses a qualitative case study design, with individual in-depth interviews and Focus Group Discussions with newly arrived Afghans and Syrians, experts from the public sector, non-governmental organizations (NGOs), social workers, volunteers, translators/interpreters and private companies. In total, 91 refugees and 69 respondents from the public and private sector and civil society organizations participated in this research. The findings on the first objective showed that three-quarters of Afghan respondents did not plan to travel to Germany before their departure; in contrast, the majority of Syrian respondents did have Germany as a destination in mind when departing from their origin or a transit country. There were different factors behind origin migration (i.e. direct migration from the country of origin to the country of destination) and transit migration (i.e. migration with extended stays in other countries before reaching the destination country). The majority of the respondents migrating directly from Afghanistan and Syria left their countries of origin mainly due to political prosecution, violent conflict, personal security, and socio-economic pressure. The major reasons that led to the departure from transit countries were lack of prospects, lack of legal residence permits, fear of deportation, barriers to education and employment, exploitation of their labour, explicit racism, and ethnic and racial discrimination. Moreover, there were some temporary factors such as the so-called opening of borders to Europe in 2015 and expectations for the protection of Syrians in Germany that were seen as an opportunity for both transit and origin migration to Europe. Smugglers, other asylum seekers in transit, and social media contacts were the most influential actors and played very important roles at the beginning, transit, and endpoints of refugees’ journeys. To address the root causes of migration, European countries including Germany could facilitate regular migration pathways. Moreover, with regard to transit migration, Germany and other European countries could support improving the conditions of refugees in the first countries of refuge, e.g., by creating more favourable reception and living conditions there, improving access to residence and work permits as well as opportunities for employment and education. The findings of the interviews suggest that this may change the decisions of many about undergoing the risky onward migration to Europe. The findings with regard to the second research objective show interesting differences in the integration of the two nationalities included in the study. Syrians were found to be better integrated into their communities as compared to Afghans. The study showed that the shorter the asylum application process is and the more secure the residency status is (which is typically the case for Syrians), the faster refugees gained access to language and integration courses, which gave them a better opportunity to get integrated into the labour market, to find housing and to make better connections to the receiving society. Among the challenges faced by Afghan refugees were the lengthy asylum application process, the difficulty in securing housing, and the long-term residence in reception centres, which caused considerable stress and hardship for the refugees. The opportunities for refugees’ adaptation into the new societies were facilitated by diverse volunteer services, social and cultural events, and labour market integration services besides the government-provided German language integration courses. Although Stuttgart was found to be a pioneering city in terms of integration facilities for refugees, there is still room for improvements, such as timely accommodation of refugees outside of refuge centres, better coordination of integration offers, and systematic employment of volunteer services for social and labour market integration purposes. Regarding the third objective, the study showed that the engagement of private companies in the labour market integration of refugees increased with the larger arrival of refugees during 2015/2016. This was due to several factors, including the following: the discursive environment; the government call to private sector participation; corporate social responsibility of large-scale international companies; and shortages of skilled workers for small and medium-sized businesses, specifically in the care and service sector. However, the findings indicate that bureaucratic administrative employment procedures, challenges related to cooperation with the public sector, and lack of secure work permits have not only discouraged companies from engagement but also decreased the effectiveness of their engagement.
Factor mobility and heterogeneous labour in computable general equilibrium modelling
(2014) Flaig, Dorothee; Grethe, Harald
The representation of labour markets in Computable General Equilibrium (CGE) models is characterised by a trade-off between data representation and data availability. Models are by definition abstract and simplified pictures of the real world: as a map of scale 1:1 does not help to find an unknown destination, a model which perfectly depicts the real world would hardly help to analyse adjustment effects of policy changes or macroeconomic shocks. When the analysis is focused on distributional issues, it seems obvious that such an analysis can only be based on models that differentiate at least more than one household group. Household groups characteristically differ in factor endowment and since factor income– besides price effects – is a main determinant of welfare analysis, the specification of labour markets crucially determines the analysis. There are mainly two possibilities to specify the labour market in a CGE model: First, the labour market can be set up as competitive market with perfect substitutability between individual workers on that market. With this setup, wages must be equal among labour types and sectors because every difference in wages provokes adjustments, which finally equalise wages again. In contrast, data reports typically significant wage differences between labour types that can only originate from imperfect labour markets. Thus, the second option is to depict these wage differences by imperfect substitutability of individual workers in the production process. But data on substitution possibilities of labour demand between different labour types is weak and estimations of substitution elasticities are in most of the cases not available. Meanwhile, in the real world, wages differ in various dimensions and in models labour types are typically differentiated by age, gender, skill level or occupation. When differentiating labour types within these dimensions, wage differences become possible and can be explained by transformation limitations between characteristics: e.g., wage differences between female and male workers are originating from the fact that female workers cannot become male workers. This differentiation has the effect that in most of the models, transformation between the characteristics of a dimension is no longer possible and workers stay in a specific labour type. Typically labour types are not differentiated by sector of employment and, thus, are assumed homogeneous amongst sectors. Movement of workers between sectors seems possible; nevertheless, data reports partly huge wage differences between different sectors of an economy. As a solution, CGE models typically include an efficiency parameter which allows calibrating the model according to the data, but the model assumes still homogeneous labour which should be priced equal. Thus, the efficiency parameter does not economically explain the existence of these wage differences. This thesis presents a comprehensive and flexible framework to introduce imperfect factor markets in CGE models. Labour mobility between labour types is controlled by migration functions where the degree of mobility is controlled by elasticities that govern the responsiveness of migration to changes in relative wages. Finally, the model provides the user with three additional instruments to control the operation of labour markets. First, the user can control the stock flow relationship for each labour type, e.g., does a migrating worker keep her productivity from the initial activity, adopt that of the destination activity or something in between; second, the user controls the flexibility of the labour market by setting the migration elasticities between activity blocks; and third, the setting of adjustment parameters determines the (assumed) costs of migrating. The analysis of productivity effects and costs of factor reallocation emphasises the relevance and influence of labour market specifications on model outcomes. Thus, this thesis sets the base for a careful setup and test of labour market assumptions applied in CGE models.