This paper derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential new hires that they otherwise would not have. Using comprehensive matched employer-employee data covering the entire workforce in one large metropolitan labor market combined with unique survey data linked to administrative records, we provide evidence that workers earn higher wages and are less inclined to leave their firms if they have obtained their job through a referral. These effects are particularly strong at the beginning of the employment relationship and decline with tenure in the firm, suggesting that firms and workers learn about workers' productivity over time. Overall, our findings imply that job search networks help to reduce informational deficiencies in the labor market and lead to productivity gains for workers and firms.

"International migration can significantly increase income per capita in Europe. We estimate that at the given wage and productivity gap between Western and Eastern Europe, migration of 3% of the Eastern population to the West could increase total EU GDP by up to 0.5%. Yet on 1 May 2004, 14 EU countries out of 15 adopted transitional arrangements vis-à-vis the new member states and national migration restrictions vis-à-vis third country nationals are getting stricter and stricter. In this paper we offer two explanations for this paradox and document their empirical relevance in the case of the EU enlargement. The first explanation is that immigration to rigid labour markets involves a number of negative externalities on the native population. The second explanation is that there are important cross-country spillovers in the effects of migration policies, inducing a race-to-the top in border restrictions with high costs in terms of foregone European output. In light of our results, we discuss, in the final section, the key features of a desirable migration policy to be coordinated at the EU level." Copyright � CEPR, CES, MSH, 2005.

In this paper we employ a wage-setting approach to analyze the labor market effects of immigration into Germany from 1980 to 2004. This enables us to consider labor market rigidities, which are prevalent in Europe. We find that the elasticity of the wage-setting curve is particularly high for young workers. Moreover, natives and foreigners are imperfect substitutes. The wage and employment effects of immigration depend on the skill structure of the immigrant workforce. Because the foreign labor supply shift has mainly affected the highskilled labor market segment, the 4 percent increase of the workforce through immigration has not increased either aggregate or foreign unemployment.

Approximately 1.2 million refugees arrived in Germany between 2015 and 2016. The national and international public discourse surrounding the arrival of these refugees covers the full spectrum of opinions. These opinions range from sceptical assessments regarding the 2015 influx as a “refugee crisis” to optimistic appraisals considering the immigration of refugees to be a solution to demographic change and labour shortages. These views are often driven by ideology and emotions rather than grounded in evidence. In this paper, we use data from a unique, nationally representative household survey of refugees who came to Germany between 2013 and 2016 to describe who these refugees are, focusing particularly on demographic and skill characteristics relevant for their successful and sustainable economic integration. We also discuss German public policies and institutional environments to promote refugees’ integration. Our descriptive analysis shows that the processing of asylum applications and the overall provision of accommodations, safety-nets, and integration programs by German authorities have advanced the refugees’ integration process, although the initial shortcomings have been widespread. Over the years, German institutions have generally been open to helping refugees and other immigrants gain ground in Germany. However, there are still challenges for policymakers. One such issue is the gender gap that is reflected in the support for female refugees with childcare obligations, which delays their language acquisition and slows their integration. Nevertheless, the empirical evidence has - contrary to the expectations - given no indications that the influx of refugees in 2015 led to a “refugee crisis” in Germany.