Refugee Benefit Cuts

Christian Dustmann, Rasmus Landersø and Lars Højsgaard Andersen
Additional contact information
Lars Højsgaard Andersen: Rockwool Foundation Research Unit

No 16077, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 longerterm 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)
Pages: 89 pages
Date: 2023-04
New Economics Papers: this item is included in nep-eur, nep-lab and nep-ure
References: Add references at CitEc
Citations:

Published - published in: American Economic Journal: Economic Policy, 2024, 16 (2), 406 - 441

Downloads: (external link)
https://docs.iza.org/dp16077.pdf (application/pdf)

Related works:
Journal Article: Refugee Benefit Cuts (2024)
Working Paper: Refugee Benefit Cuts (2023)
Working Paper: Refugee Benefit Cuts (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp16077

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().