The role of firms in the economic assimilation of refugees

ObjectivesTo investigate the extent to which firm sorting effects influence refugee-native earning gap in Netherlands, and examine role of pay-setting widening or narrowing gap.
 MethodUsing Dutch wage refugee registration data from 2014 2021, we employ a two-way model, also called AKM Blinder-Oxaca decompose order pay into effects.
 ResultsOur findings indicate that refugees Netherlands earn only third average earnings native workers 17% can be explained by effects. Pay-setting are found negative, indicating channel works reduce gaps between natives refugees. Limited access higher-paying firms may lead mismatch refugees' abilities earnings, exacerbating adverse impact sorting.
 ConclusionTo promote economic assimilation, should provide accessible job opportunities based on fair assessments skills. Our analysis underscores importance understanding addressing gaps, highlights potential such gaps.