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Refugee Benefit Cuts

Author

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  • Christian Dustmann
  • Rasmus Landersø
  • Lars Højsgaard Andersen

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.

Suggested Citation

  • Christian Dustmann & Rasmus Landersø & Lars Højsgaard Andersen, 2024. "Refugee Benefit Cuts," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 406-441, May.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:2:p:406-41
    DOI: 10.1257/pol.20220062
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    Cited by:

    1. Hasager, Linea, 2024. "Does granting refugee status to family-reunified women improve their integration?," Journal of Public Economics, Elsevier, vol. 234(C).

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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