Economic aspects of migration and the refugee crisis in Europe: challenges and opportunities in a dramatic scenario

Abstract

The world is currently facing the largest humanitarian crisis since the Second World War. The growing number of people displaced by civil conflict or natural disasters has increased dramatically in the recent years and this is posing enormous challenges to host countries. However, to date economic impacts of refugees in host and sending countries are controversial and arguably understood. Therefore, the aim of this article is to analyse how the traditional economic approach of migration and labour can help to understand and manage the refugees’ situation, as well as their potential benefits for all the parties involved. The present research concludes that, in the long run, refugee migration may have positive outcomes for sending and host economies, and for themselves. However, it is also emphasized that carefully designed refugee policies are critical to meet that goal, mainly focusing on two aspects: identification and integration.