In an American novel, I found this sentence, but I don’t understand the exact meaning of "living in refusal". The man here, who in the past worked as an engineer, is a Jew living in the USSR, and he lost his previous job because of discrimination.
He had applied for a job as an elevator operator in a hospital, but he was waiting to hear about that. Such menial jobs were quickly filled by Jews living in refusal, all of them with specialist degrees.