Asylum seekers and refugees in Austria: public policy and attitudes

Abstract

Austria continues to be one of the most attractive countries for asylum seekers among all EU countries. The main objective of this paper is to identify how the current political status of refugees and asylum seekers influences the Austrian economy. This study has shown that oil shocks had highly negative consequences for migrants in Austria. When accessing the Austrian labor market, some of the most striking features that affect the participation of migrants are discrimination based on restricted accessibility to high-wage sectors and pay gaps and discrimination in recruitment. However, the econometric analysis shows that immigration flows have a positive effect on the economic growth of the country. On the other hand, the results showed that there was prejudice and incorrect reporting, which increased the illegalization of asylum seekers. All of these factors create obstacles for immigrants to properly integrate into the labor market. However, the results of the panel data analysis among European countries has shown that the immigration flow has had a positive impact on GDP growth. Labor market conditions for immigrants become crucial from this point of view. It can be concluded that the national asylum policy in Austria was progressively limiting and outweighed Austrian humanitarian interests. A more inclusive policy could contribute to the economic growth of the country.