Upon arrival in Germany, refugees are distributed among the 16 federal states. This distribution decision is based on a fixed formula consisting of two components: tax revenue and the population size of the federal state. Research suggests that optimal refugee-location matching enhances refugee integration into the labor market. However, the current mechanism fails to align refugees’ characteristics with their assigned locations, resulting in a missed opportunity to leverage synergies. To this end, we use comprehensive refugee data in Germany and exploit an existing machine learning matching tool to assign refugees to states algorithmically. Our findings reveal potential improvements in refugee employment, depending on the modeling setup. Our study provides two key contributions. First, we evaluate the effectiveness of an algorithmic matching tool within Germany. Second, we investigate the fairness implications of such an algorithmic decision-making tool by evaluating the impact of different train data setups on group-specific model performance.
inproceedings
BibTeXKey: SK24a