Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: How residence permits affect the labor market attachment of foreign
  workers: Evidence from a migration lottery in Liechtenstein   We analyze the impact of obtaining a residence permit on foreign workers'
labor market and residential attachment. To overcome the usually severe
selection issues, we exploit a unique migration lottery that randomly assigns
access to otherwise restricted residence permits in Liechtenstein (situated
between Austria and Switzerland). Using an instrumental variable approach, our
results show that lottery compliers (whose migration behavior complies with the
assignment in their first lottery) raise their employment probability in
Liechtenstein by on average 24 percentage points across outcome periods (2008
to 2018) as a result of receiving a permit. Relatedly, their activity level and
employment duration in Liechtenstein increase by on average 20 percentage
points and 1.15 years, respectively, over the outcome window. These substantial
and statistically significant effects are mainly driven by individuals not
(yet) working in Liechtenstein prior to the lottery rather than by previous
cross-border commuters. Moreover, we find both the labor market and residential
effects to be persistent even several years after the lottery with no sign of
fading out. These results suggest that granting resident permits to foreign
workers can be effective to foster labor supply even beyond the effect of
cross-border commuting from adjacent regions.

5
The categories of this paper are: gr-qc
23
The categories of this paper are: solv-int
36
The categories of this paper are: cmp-lg
11
The categories of this paper are: hep-lat
30
The categories of this paper are: q-alg
2
The categories of this paper are: math
33
The categories of this paper are: plasm-ph
34
The categories of this paper are: chem-ph
24
The categories of this paper are: dg-ga
4
The categories of this paper are: cond-mat
15
The categories of this paper are: nucl-ex
27
The categories of this paper are: comp-gas
9
The categories of this paper are: nlin
37
The categories of this paper are: supr-con
22
The categories of this paper are: chao-dyn
28
The categories of this paper are: alg-geom