In contrary to previous researchof refugee shocks, the analysis of Brojas & Monras (2016, p.
6) “derives asingle empirical approach based on the implications of factor demand theory”.They underline, that with this methodological approach the consequences of anyrefugee supply shock can be measured. “The theoreticalderivation indicates exactly the type of correlation between labor marketoutcomes and the number of refugees that should be estimated in any specificcontext. And it also delineates precisely the conditions under which thatobserved correlation can be interpreted as measuring a causal impact of therefugee-induced increase in the supply of labor.” (Brojas & Monras, 2016,p.
6)Brojas & Monras (2016, p. 6)also add, that their “analysis plays close attention to isolating theparticular groups that are most likely to be affected by refugee supply shocks”and it can “examine the impact of the supply shocks on potentiallycomplementary native groups”. Finally, Brojas & Monras (2016) conclude withthe following findings:”The empiricalanalysis reported below uses the theory-derived empirical specification toestimate the impact of the Marielitos, of the French repatriates and Algeriannationals moving to France, of the flow of Soviet émigrés into Israel, and ofthe refugees from the Yugoslav wars into several European countries. Despitethe obvious differences in the historical events that we examine, in the skillcomposition of the refugees, and in the countries and localities affected bythe shocks, the use of a unified empirical framework to study each of the episodesreveals a common thread: Exogenous refugee supply shocks have an adverse effecton the labor market opportunities of competing natives in the destinationcountries.
Depending on the episode and the data, we document that the shocksometimes reduces the wage of competing workers; sometimes it reduces theiremployment rates; and sometimes it reduces both. At the same time, however, theempirical analysis also reveals that exogenous supply shocks often have abeneficial impact on the employment opportunities of complementary nativeworkers. In short, refugee supply shocks have sizable distributionalconsequences in the labor markets of receiving countries.” (Brojas &Monras, 2016, p. 6).