Permanent or temporary settlement? A study on the short-term effects of residence status on refugees’ labour market participation

Whether refugees in need of protection should be granted long- or short-term residence permits in the host country upon arrival is a long-standing debate in the migration policy and scholarly literature. Rights-based models of inclusion advocate for secure and long-term residency status arguing that this will provide the foundations for successful inclusion. Responsibilities-based models on the other hand claim that migrants should only be granted such status if certain criteria, such as full-time employment, have been met, again under the belief that such a system will facilitate inclusion into the host society. Using a sudden policy change as a natural experiment combined with detailed Swedish registry data, we examine the effect permanent residency on three measures of labour market inclusion in the short-term. Our findings are twofold. On the one hand, we find that temporary residents that are subject to a relatively less-inclusive situation have higher incomes and less unemployment. However, at the same time, they are less likely to spend time in education than are those with permanent residency. First part title Permanent or Temporary Settlement? Second part title A Study on the Short-Term Effects of Temporary and Permanent Residence Permits on Labour Market Participation