J o Jobs for Immigrants b Jobs for Immigrants s f o VOLUME 1: r I VOLUME 1: m LABOUR MARKET INTEGRATION IN AUSTRALIA, DENMARK, m LABOUR MARKET INTEGRATION GERMANY AND SWEDEN ig r IN AUSTRALIA, DENMARK, a 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. 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wtarbitaes teos .u sF oart more RK, GERMANY AND SWEDEN S SENJJNIMOKEOKDEMIBTLIBUWTSLILG SWSOCL NR RS IEAAMOEKTN TMSWDNRTI ISOOGSUEK RKRETNCSIKADLWS NALUJI ISTMCTMSOO SAIKIM MOTRBMIELIMODNKLSIIGNSUIGGS CEIRRIJRM MAODAJATAMNBOM IUONITSNGBNSIC TGRTN SESJAAESRODN TT E BUWSTASIESSDOCOKNKD AURNENIUTTI LDKELICC OSSUTLILANMW AC STSSS AITOJK OM TKNORIINNILOOKBIILE GLENSSJNSTOL T RSNJ I WBSMWIOKEAMS MIBTOL NNOWNSMLIGSR SETERONRT IKSTKRGIEKAWMKWTI NSSLROMSSWT RL OISAK JOGSJKS ORKNIRROESL IKAD LBTKNLBSSNLUSK SSSSETCSSI S L A TKI SEM JNLTEIWELSIOKDMODEDL INISUOIIMBUTMGULJ CMWRISROMJCLMCAOAIBSI TGKAMGONBAESIRO TRSITS TDNGRANNSA I IRNNOU NEEJKOEJATETTOTNOCDSSNNTWSBWU WTB AOE JESSICIOMDTSRDMO OARNEUKIUT MODKRECBESMICOSUT ADKNASINSW TICGTGSK SINU AIOOJKOEIIRTLRM ORNECINIJDLLOAKB ATLS OAMJNSUSJSN OWNTO I BMICSBNJITBIGTMOOOKSSMESSASMIBT RL I RNNTG WNSE LISAGESIR SKE ODONTRIKANT KMRSWIEAWNUMNIKTTINL OTLMOMSCWJ STSLRIRL OISM OAGSIK SNKESG SRKSRTBEDSE M IK KADRNT LIUNSSOSSNWLUCIIKAEK S GLETCOANSIEIL NSTLLATTKIRRLDM LTIWSITOWSEKILSIAMMOUD SNLS OINNNISOUIM MGCM SJ CSRMETRIROKMJAMAIOAKIISTKBGITGLKTMGNBSILWI SROIRSRLITSSS OGANNSA L OAKRNJEIJ NEJNMSEJADTONTOIRTOODML SNUW SIBTKNBU BTLBCMI OGEESSCSASSSESDSRRD MTA NEU K TA UTI SEOJNDEECESNIIWCOOGNKUTD ATDEDANSWT CSTIOBRUJTKU ILU AIOOOJOEIWTSARLCLOCRNCBDNILOS NKBK SAUS AOAEJNSSJ C TSOTTTNOND I RMASBNIJSI EBSIOTOUEOJKOKSMETKS IOIBOT WTSNCILS INNNLGWNSNLWOKLB E AR SE OJSIRNITIJAMIT TSMMO ROWLOKIEWNIMIMK STBLMOORTMBEMOMSW SMSSRSR KDNSII OIIGISKKG NKGGEGSNU RK SRIDSERLEIRIK RARM T LLUECASJDSSNWSLACNAKATKO ASM TUOATSININIWL NSTMLTSKBIRLICM LTIIT GMITOSEKLOOSSEMSAD SSNLSID RGI RNISUIT MGE RSSJA CSIK RIOKMADOMIAKNAKINMBSITLUMNITSILI ISBN 978-92-64-03359-7 -:HSTCQE=UXXZ^\: 81 2007 14 1 P www.oecd.org/publishing Fx-titre.fm Page 1 Wednesday, May 23, 2007 9:38 AM 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 No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to OECD Publishing [email protected] or by fax 33145249930. Permission to photocopy a portion of this work should be addressed to the Centre français d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, fax 33146346719, [email protected] or (for US only) to Copyright Clearance Center (CCC), 222 Rosewood Drive Danvers, MA 01923, USA, fax 19786468600, [email protected]. 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 4 – 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 5 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 7 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 arrivals.............................................................................................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 8 – 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