Influx of refugees: Integration as a key challenge

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IZA Policy Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 18.01.2017 12:00 - 13:15


Presentation by 

Bodo Aretz (German Council of Economic Experts)




The talk gives a summary on the results of chapters 8, 9, and 10 of the Annual Report of the German Council of Economic Experts. Germany is still able to bear the additional direct refugee-related expenses but integration is a key challenge of the influx of refugees. Consequently, high level of priority should be given to promoting skills acquisition and education. A flexible labour market with low entry barriers is essential for integration. In the past few years a large low-wage sector has helped to boost women's employment and absorb the rising numbers of migrants. However, the opportunities for advancement to better-paid positions have been relatively limited to date. As the current development of income and wealth inequality shows, increasing income and wealth mobility is a large challenge and should be tackled primarily through a targeted education policy. Better permeability of the education system and the introduction of a mandatory preschool year could improve equal opportunities.