Labor market integration of refugees: RCT evidence from an early intervention program in Sweden

This study uses a randomized controlled trial to evaluate a new program for increased labor market integration of refugees. The new program starts shortly after the residence permit is granted and uses three main components: early and intensive language training, work practice with supervisors, and job search assistance performed by professional caseworkers. The imme-diate and intensive assistance contrasts previous integration policies which typically constitute low-intensive help over long periods of time. We find large positive effects on employment of the program, with magnitudes corresponding to around 15 percentage points. A mediation analysis shows that 7-8 percent of the impact of the program seems to be explained by increases in doc-umented language skills. Cost estimates suggest that the new policy is less expensive than earlier labor market programs.