Since 2013, more than two million refugees have arrived in Germany and have been allocated across federal states and districts according to legal policies. A steadily increasing number of refugees is now entering the German labor market, albeit under varying economic and demographic contexts....

In this paper we study the zero frequency spectral properties of fractionally cointegrated long memory processes and introduce a new frequency domain principal components estimator of the cointegration space and the factor loading matrix for the long memory factors. We find that for fractionally...