Jobs for immigrants

292 Pages·2.003 MB·English

by  Georges Lemaître, Thomas Liebig, Organisation for Economic Co-operation and Development., SourceOECD (Online service)

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Jobs for Immigrants b Jobs for Immigrants
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LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK,
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LABOUR MARKET INTEGRATION
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When immigrants arrive in a new country, they are confronted with new labour-market requirements n
t GERMANY AND SWEDEN
such as language proficiency, familiarity with job search procedures and work practices which they s
are not always able to satisfy. Over time, this expertise can be acquired, and in principle immigrant V
performance in the receiving country should be similar to that of the native-born. In practice O
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Jobs for Immigrants
VOLUME 1
LABOUR MARKET INTEGRATION
IN AUSTRALIA, DENMARK, GERMANY
AND SWEDEN

ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Fx-titre.fm Page 2 Wednesday, May 23, 2007 9:39 AM
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work together to
address the economic, social and environmental challenges of globalisation. The OECD is also at
the forefront of efforts to understand and to help governments respond to new developments and
concerns, such as corporate governance, the information economy and the challenges of an
ageing population. The Organisation provides a setting where governments can compare policy
experiences, seek answers to common problems, identify good practice and work to co-ordinate
domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea,
Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic,
Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of
the European Communities takes part in the work of the OECD.
OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and
research on economic, social and environmental issues, as well as the conventions, guidelines and
standards agreed by its members.
This work is published on the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of the Organisation or of the governments of its member countries.

© OECD 2007
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3
FOREWORD –

Foreword
In many OECD countries, immigration is seen as one possible route to alleviate the
adverse consequences of ageing populations and to help fill labour shortages. For this to
be a feasible policy option in the future, it is clearly necessary that immigrants – many
having arrived only recently – their children, and future arrivals be well “integrated” into
OECD societies. Since they now constitute a significant proportion of the resident
population in many countries, the integration of immigrants and their children into the
labour market is essential to ensure social cohesion and the acceptance of further
immigration by the host country population. Although labour market outcomes are not the
only outcomes which matter, active participation in the labour market is arguably the
single most important factor for the successful integration of immigrants.
This volume presents the experience of four countries – Australia, Denmark,
Germany and Sweden – with respect to the integration of immigrants into the labour
market. These four countries have diverse migration histories and migration regimes and
provide a good cross-section of OECD immigration countries for comparison. One of the
main issues with respect to the labour market integration of immigrants is the
transferability of skills and qualifications acquired in the origin country to the host
country. For children of immigrants it is acquiring the education and the knowledge of the
host country needed to ensure a smooth transition into the labour market.
The challenge all four review countries face is to provide immigrants with the
necessary skills to participate fully in the host-country labour market, to assist them in
“communicating” to employers the skills which they possess and to remove or bypass
obstacles which they face to access the labour market. Children of immigrants, on the
other hand, need to be exposed more intensively to the host-country language at an early
age, provided with assistance at school, with job search and access to recruitment

channels when they enter the labour market.
The reviews presented in this publication describe how the four countries covered go
about trying to meet this challenge. They are the first in a series of reviews that will also
cover Belgium, France, Portugal, the Netherlands, Switzerland and the United Kingdom.
Chapter I provides a general overview of integration issues, of outcomes for a broader
group of OECD countries and of key findings from the analyses of the four countries
covered. It also includes a special section on the integration of children of immigrants, a
topical issue, particularly in European OECD countries.
Subsequent chapters consist of detailed country reviews which include a diagnosis of
the labour market integration of immigrants in each country, as well as specific national
features that affect the integration process. A history of recent immigration and of
integration policies is presented along with an overview of the framework for integration
policy, the relevant actors in the field and the particular measures and initiatives
addressed to immigrants or, in some cases, targeted at broader groups but where
immigrants are overrepresented. The diagnosis is then extended, with a look at the
JOBS FOR IMMIGRANTS – LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK, GERMANY AND SWEDEN – ISBN 978-92-64-03359-7 © OECD 2007
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– FOREWORD

evolution of immigrant outcomes over the recent past, paying attention to the nature and
characteristics of migration flows, the effect of policy initiatives and in particular of
introduction programmes, the recognition of foreign qualifications and experience, the
operation of the labour market and discrimination issues. In the studies on Denmark and
Germany, special attention is given to the children of immigrants. Each of the country
review chapters ends with an overall summary with recommendations.
This publication was prepared by the Non-member Economies and International
Migration (NEIM) Division in the OECD Directorate for Employment, Labour, and
Social Affairs (DELSA). The principal authors are Georges Lemaître and Thomas Liebig.
John P. Martin
Director,
Employment, Labour and Social Affairs, OECD

JOBS FOR IMMIGRANTS – LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK, GERMANY AND SWEDEN – ISBN 978-92-64-03359-7 © OECD 2007
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ACKNOWLEDGEMENTS –

ACKNOWLEDGEMENTS
These studies would not have been possible without the support of the national
authorities involved, in particular the respective country representatives in the OECD
Working Party on Migration (at the time of writing): David Watt (Australia), Agnete
Mathiesen (Denmark), Dagmar Feldgen (Germany), Michael Hagos (Sweden).
The OECD Secretariat would like to thank all of the persons in the countries visited
who gave freely of their time to inform the project team about developments in their
respective countries and to respond to the numerous questions raised. A special thanks
goes to Shubila Balaile, Monir Dastserri, Barbara Fröhlich, Jutta Gross-Bölting, Emilio
Hellmers and Magdalena Sivik for their assistance in and contributions to the analysis.
The individual country reviews were presented at conferences and press events in the
member countries concerned. Draft versions were discussed at the OECD Committee for
Employment, Labour, and Social Affairs (ELSAC) and the OECD Working Party on
Migration. The OECD Secretariat wishes to thank the participants of these conferences,
as well as the members of ELSAC and the Working Party, for their helpful comments.

JOBS FOR IMMIGRANTS – LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK, GERMANY AND SWEDEN – ISBN 978-92-64-03359-7 © OECD 2007

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TABLE OF CONTENTS –

Table of Contents
Summaries of country chapters ..........................................................................................................13
Résumés des chapitres par pays ........................................................................................................21
Chapter 1. KEY FINDINGS ON THE LABOUR MARKET INTEGRATION
OF IMMIGRANTS
Introduction....................................................................................................................................31
1. Definitions and methodology......................................................................................................32
2. Immigration and labour market outcomes: an overview..............................................................35
3. Key issues in the labour market integration of immigrants..........................................................43
4. A significant challenge: the integration of the children of immigrants.........................................56
Conclusion......................................................................................................................................67
References......................................................................................................................................69
Chapter 2. THE LABOUR MARKET INTEGRATION OF IMMIGRANTS IN AUSTRALIA
Introduction....................................................................................................................................73
1. The framework for integration..............................................................................................77
1.1. The evolution of Australia as a multicultural immigration country..................................77
1.2. The evolution of selection policy....................................................................................81
1.3. Key actors.......................................................................................................................85
1.4. Main services provided to migrants.................................................................................87
2. Key issues in the labour market integration of immigrants...................................................91
2.1. The impact of selection policy........................................................................................91
2.2. Outcomes of recent arri vals.............................................................................................94
2.3. The settlement perspective..............................................................................................97
2.4. The recognition of foreign qualifications and experience................................................98
2.5. The impact of the waiting period on labour market outcomes.......................................103
2.6. Immigrants and the Job Network services.....................................................................105
2.7. Importance of English language and effectiveness of language training........................106
2.8. Discrimination..............................................................................................................107
2.9. The outcomes of humanitarian migrants........................................................................108
2.10. The outcomes of the second generation.........................................................................110
Summary and Recommendations .................................................................................................114
Annex 2.1. Australian migration categories, fiscal years 2004-2005..............................................119
Annex 2.2 Logistic regression on the likelihood of employment relative to non-employment
of immigrants...............................................................................................................120
References....................................................................................................................................122
JOBS FOR IMMIGRANTS – LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK, GERMANY AND SWEDEN – ISBN 978-92-64-03359-7 © OECD 2007
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– TABLE OF CONTENTS

Chapter 3. THE LABOUR MARKET INTEGRATION OF IMMIGRANTS IN DENMARK
Introduction..................................................................................................................................125
1. The framework for integration............................................................................................126
1.1. Overview of employment outcomes..............................................................................126
1.2. History of migration to Denmark and structure of the immigrant intake........................129
1.3. Legislation governing immigration into Denmark.........................................................132
1.4. The evolution of integration policy...............................................................................134
1.5. Key actors.....................................................................................................................137
1.6. The introduction programme.........................................................................................141
1.7. The labour market integration model.............................................................................143
2. Key issues in the labour market integration of immigrants.................................................144
2.1. Immigrants’ characteristics and labour market outcomes..............................................144
2.2. Specificities of the Danish labour market......................................................................153
2.3. Analysis of integration policies.....................................................................................161
2.4. Integration of the “second generation”..........................................................................166
2.5. Discrimination..............................................................................................................174
Summary and Recommendations..................................................................................................177
Annex 3.1. Age structure of the Danish population by gender and migration background, 2006....185
Annex 3.2. The ten most important origin countries of immigrants and their share in the total
immigrant stock in 1985, 1995 and 2006...................................................................185
Annex 3.3. Structure f the Danish language courses......................................................................186
Annex 3.4. Determinants of immigrants' employment probability – odds ratio estimates...............187
Annex 3.5. Probability of being employed – Persons aged 20 to 29 years old
and not in education...................................................................................................188
References....................................................................................................................................189
Chapter 4. THE LABOUR MARKET INTEGRATION OF IMMIGRANTS IN GERMANY
Introduction..................................................................................................................................195
1. Methodology – Target populations and labour market characteristics.................................196
2. The main migrant groups in Germany................................................................................199
2.1. “Guestworkers” and their families.................................................................................200
2.2. Ethnic Germans from Eastern Europe...........................................................................201

2.3. Humanitarian migrants..................................................................................................203
2.4. Evolution of the labour market situation of people with a migration background..........204
3. The framework for integration............................................................................................208
3.1. The legal framework.....................................................................................................208
3.2. The role of sub-national governments and non-governmental actors.............................213
3.3. Main areas of the integration activities..........................................................................215
4. Key issues in the labour market integration of immigrants and the second generation........219
4.1. Outcomes of recent arrivals...........................................................................................219
4.2. Qualification structure of the native and immigrant population.....................................221
Summary and Recommendations..................................................................................................239
References....................................................................................................................................246

JOBS FOR IMMIGRANTS – LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK, GERMANY AND SWEDEN – ISBN 978-92-64-03359-7 © OECD 2007