Labor Market Integration of Refugees: RCT Evidence from an Early Intervention Program in Sweden

Abstract

This study uses a randomized control trial to evaluate a new program for increased labor market integration of refugees. The program introduces highly intensive assistance immediately after the residence permit is granted. The early intervention strategy contrasts previous integration policies, which typically constitute low-intensive help over long periods of time. We find positive effects on employment of the program. The magnitude of the effect is substantial, corresponding to around 15 percentage points. Our cost estimates suggest that the new policy is less expensive than comparable labor market programs used in the past.