Adapting Migration Policy to Labor Market Needs: Socio-Economic Challenges in the Slovak Republic

This study examines the socio-economic challenges of migration policy in the Slovak Republic through an analysis of gaps in labor market participation between immigrants and natives. We use data from the 2019 EU-LFS and a method called Oaxaca-Blinder decomposition to look at differences in job participation among five groups of immigrants (EU-15, EU-13, other EU, non-EU, and all immigrants), considering factors like education, age, and gender. Our results reveal a complex landscape: while immigrants collectively show higher participation rates than natives (0.804 vs. 0.704), significant variations emerge across subgroups. EU-13 immigrants have a significant disadvantage with a gap of -0.130, which is caused by both measurable factors and unknown reasons, while EU-15 immigrants suffer greatly in the benefits they get from their education, with a gap of -1.261, even though their participation rates are similar. Non-EU immigrants exhibit lower participation (−0.100 gap), primarily explained by educational differences. The findings highlight structural barriers, such as credential devaluation and potential discrimination, which challenge conventional human capital theories. Methodologically, we address data limitations through subgroup aggregation and sensitivity analyses. The study contributes to migration literature by providing the first comprehensive analysis of immigrant-native gaps in Slovakia, emphasizing that there are targeted policy interventions, including credential recognition reforms and anti-discrimination measures. These insights are particularly relevant for Central European countries undergoing similar post-socialist transitions and demographic changes.