Refugee Benefit Cuts

Christian Dustmann, Rasmus Landersø and Lars Højsgaard Andersen

No 10386, CESifo Working Paper Series from CESifo

Abstract: This paper analyzes the effects of Denmark’s Start Aid welfare reform that targets refugees. Implemented in 2002, it enables us to study not only the reform’s immediate effects, but also its longer-term consequences, and its repeal a decade later. The reform-induced large transfer cuts led to an increase in employment rates, but only in the short run. Overall, the reform increased poverty rates and led to a rise in subsistence crime. Moreover, local demand conditions generate substantial heterogeneity in the reform’s effects on immediate and longer-term employment.

Keywords: social assistance; welfare state; labor market outcomes; labor demand; migration (search for similar items in EconPapers)
JEL-codes: E64 I30 J60 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-lab and nep-ure
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Related works:
Journal Article: Refugee Benefit Cuts (2024)
Working Paper: Refugee Benefit Cuts (2023)
Working Paper: Refugee Benefit Cuts (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10386

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