Private companies' engagement in the labour market integration of refugees: An exploratory study of the city of Stuttgart, Germany
| Published date | 01 August 2023 |
| Author | Masooma Torfa,Christine Bosch,Regina Birner,Hannes Schammann |
| Date | 01 August 2023 |
| DOI | http://doi.org/10.1111/imig.13089 |
1Department of Agricultural Economics and
Social Sciences in the Tropics and Sub-tropics,
University of Hohenheim, Stuttgart, Germany
2Institute of Social Sciences, Migration Policy
Research Group, University of Hildesheim,
Hildesheim, Germany
Correspondence
Masooma Torfa, Department of Agricultural
Economics and Social Sciences in the Tropics
and Sub-tropics, University of Hohenheim,
Wollgrassweg 43, 70599 Stuttgart, Gemrany.
Email: torfa.masooma@uni-hohenheim.de
Funding information
Evangelisches Studienwerk Villigst
Abstract
Private companies of all sizes may engage in the integration
of refugees into the labour market. Taking the case study
of the highly industrialised German city of Stuttgart, this
study explores the motivation of (a) private large-scale inter-
national enterprises including (automotive and high-tech
companies) and (b) family-owned small- to medium-sized
companies (private social enterprises, suppliers to the auto-
motive industries, architecture, and engineering companies)
to do so. The research further explores the companies' chal-
lenges, opportunities and the lessons learned throughout
the process. Utilising the principles of Grounded Theory,
a qualitative case study approach is applied with in-depth
interviews with private companies, civil society, public
private partnerships and experts. The findings show that the
arrival of a large number of refugees during 2015/2016 has
increased the engagement of the companies, increased their
cooperation with other sectors, and has correspondingly led
to some innovative initiatives in refugees' labour market inte-
gration and policy advocacy. The call for the engagement of
the private sector and the existence of employment-related
policies such as tolerated work permits (Ausbildungsdul-
dung/Beschäftigungsduldung) were essential to create
ORIGINAL ARTICLE
Private companies' engagement in the labour
market integration of refugees: An exploratory
study of the city of Stuttgart, Germany
Masooma Torfa1 | Christine Bosch1 | Regina Birner1 |
Hannes Schammann2
DOI: 10.1111/imig.13089
Received: 26 January 2022 Revised: 10 July 2022 Accepted: 5 October 2022
152
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits
use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or
adaptations are made.
© 2022 The Authors. International Migration published by John Wiley & Sons Ltd on behalf of International Organization for Migration.
Int Migr. 2023;61:152–169.wileyonlinelibrary.com/journal/imig
COMPANIES AS ACTORS OF REFUGEE INCLUSION153
INTRODUCTION
Around the world, displaced persons and refugees are supported by highly diverse actors including individual volun-
teers, teachers, politicians, and public, private, and Civil Society Organizations (CSOs) (Danış & Nazlı, 2019; Hesse
et al., 2019; Hinger, 2016; Stürner et al., 2020). The literature has so far almost exclusively focussed on the role of the
public sector and CSOs in the integration policy and practices for refugees (Bontenbal & Lillie, 2019; Embiricos, 2020;
Schammann et al., 2021; van Selm, 2003; Yilmaz, 2019). Exceptions are Müller (2021); Schmidt and Müller (2021) and
Omata (2012) who studied the role of the private sector concerning the conception of citizenship, compared work-
place integration of refugees with former labour migrants, and the role of the private sector in refugee livelihood in the
context of a developing country, respectively. The lack of studies on the role of private companies 1 and the absence
of private companies in refugee integration is also noted in existing literature (Omata, 2012; Schmidt & Müller, 2021;
United Nations University, 2014). However, with the arrival of a large number of refugees during 2015/2016, private
companies have received attention as active actors, with the United Nations High Commission for Refugees (UNHCR) 2
and national governments in the United States, Europe, and Germany calling upon the private sector as a key actor and
inviting them to take part in the reception and integration of refugees (Müller, 2021). For instance, in June 2016, the
US government launched a “Call to Action” 3 for the engagement of private companies in the global refugee crisis. This
call focussed on three impact areas including education, employment, and enabling and increasing financial support
for humanitarian activities. In Europe in 2019, the World Bank Group came together with the Confederation of Danish
Industry and the European Investment Bank to emphasise the role of the private companies in refugee integration
and to initiate the programme “Private companies 4 Refugees” 4 intending to promote the involvement of the private
sector in employment, entrepreneurship, investment and services for refugees and host communities. Germany, as
a major recipient of the refugees within the European Union (EU), is often named as a case where sectors cooper-
ated successfully in labour market integration. In 2015, the German government appealed to its 30 largest compa-
nies to take a role in the labour market integration of refugees (Müller, 2021). After that, labour market actors have
started offering a variety of measures, which sometimes have gone beyond labour market integration (Aumüller, 2016;
Brücker et al., 2019; Müller, 2021). This has been attributed to pressure from media, the public and employees, as well
as social responsibility, showing solidarity, etc. By yielding to this pressure companies improve their image, and only to
a lesser extent their labour market needs (Emerllahu, 2017; Müller, 2021; Müller & Schmidt, 2016). These few existing
studies have primarily examined the engagement of large companies and their contributions.
In 2015, almost half a million asylum applications were filed in Germany which increased further and reached its
peak at 745,545 persons in 2016. However, due to the EU agreements with Turkey and a few other bilateral agree-
ments, the number sharply decreased to 222,683 in 2017, and it continued to gradually decrease to 185,853 in 2018,
165,938 in 2019, and reached its lowest level at 122,170 during COVID-19 pandemic in 2020. In 2021, however, the
number of asylum seekers started to increase to 190,816 and the war in Ukraine is expected to cause another record
in the number of forced migration to Germany in 2022 (BAMF, 2021).
sufficient incentives for private companies to engage in the
training and employment of refugees. However, the inse-
cure residence permits and bureaucratic procedures in the
public sector mostly discouraged their engagement. Our
research shows that the two company types had different
possibilities, different approaches towards refugees and
faced different challenges while engaging in refugee labour
market integration.
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting