Employment Effects of Spatial Dispersal of Refugees

Anna Damm (apd@econ.au.dk) and Michael Rosholm

No 605, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

Abstract: We argue that spatial dispersal policies on refugees and asylum seekers influence labour market assimilation of refugees through two mechanisms: first, the local job offer arrival rate and, second, place utility. Our partial search model with simultaneous job and residential location search predicts that the reservation wage for local jobs decreases with place utility. We argue that spatial dispersal decreases average place utility of refugees which decreases the transition rate into first job due to large local reservation wages. We investigate both mechanisms empirically and test the predictions of the theoretical model by evaluating the employment effects of the Danish spatial dispersal policy carried out 1986-1998.

Keywords: Migration (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-dev
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https://www.cream-migration.org/publ_uploads/CDP_05_06.pdf (application/pdf)

Related works:
Journal Article: Employment effects of spatial dispersal of refugees (2010)
Working Paper: Employment Effects of Spatial Dispersal of Refugees (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:0605

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