Abstract:
We study how low and medium-skilled refugee immigration affects natives' labor market outcomes. Using individual-level panel data on the German workforce for 2011-2019 and exogenous regional variation from processing authorities' distances, we find that a larger inflow of refugees to a district increases the probability of full-time employment for incumbent workers. Fewer outflows of employment drive this effect. The yearly estimates suggest positive labor demand responses in the short run - in occupations that supply services to the refugees - and positive labor supply effects in the medium run - in manufacturing occupations. Wages, job task composition, and job changes remain unaffected, though positive mobility responses are observed.