Abstract

In this study, we investigate the determinants of social integration of Syrian refugees and the impact of social integration on refugees’ decision to stay in Germany, using the 2016 IAB-BAMF-SOEP Refugee Survey. Our econometric strategy is based on the estimation of a simultaneous equation model for social integration, economic integration, and the decision to stay, handling endogeneity issues through an instrumental variables strategy. Our first contribution is to show that economic integration has an impact on social integration for low- and medium-educated refugees only. Furthermore, language proficiency, having a child in Germany, refugee accommodation, and the number of acquaintances from other countries have a positive impact on social integration, while age has the opposite effect. Our second main result is that social integration affects the intention to stay in Germany, whereas economic integration does not. Moreover, education, English proficiency, and the number of daughters in Germany have a negative impact on the intention to stay.

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