ifo Researcher Poutvaara Favors Speeding Up German Asylum Procedures

According to Poutvaara, there may be a problem with the planned payment card for asylum seekers: they might use it to buy products such as cigarettes or expensive food and then sell them on. “That’s why I expect the card to have only a minor effect.” This problem doesn’t arise with pure benefits in kind, such as offering food in lodgings, but benefits of that sort are more expensive and more difficult to organize. The introduction of a payment card could make Germany less attractive as a destination country, but there is no research evidence on the effects of such a measure. That makes it imperative to conduct research in the course of the card’s introduction on whether it has the desired effect.

Poutvaara said it was desirable to differentiate between asylum seekers from countries with good and poor prospects of remaining in Germany. It would make sense to provide asylum seekers whose prospects of remaining are poor with less money and more benefits in kind, since these would make traveling to Germany and submitting an unfounded asylum application less attractive. For asylum seekers with good prospects of staying, the argument in favor of benefits in kind is weaker because they make integration more difficult. The process for granting this group permission to work should be speeded up.

Giesing went on to write that it is necessary to tap the work potential of immigrants already living in Germany by ensuring they are better integrated. Investments in language skills and retraining can be of help. To promote labor market integration, the rules and regulations regarding residency should be eased for all refugees. If they find a job or educational offer in another district, they should be able to move there without bureaucratic hurdles and certificates, as long as this does not increase the cost of their housing or other benefits.