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The effects of cash assistance on refugee outcomes

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  • LoPalo, Melissa

Abstract

The United States receives tens of thousands of refugees per year, many of whom arrive with few resources. The federal refugee resettlement program aims to rapidly move refugees into employment and self-sufficiency. This causes refugees to undergo a search and matching process upon arrival that may be affected by cash assistance generosity. This paper exploits variation in cash benefit levels for welfare programs available to refugees after resettlement to identify the effects of welfare generosity on long-term labor market outcomes. I find that an additional $100 in TANF maximum monthly benefits is associated with a 5–8% increase in wages, but no significant change in the probability of employment. The effects are the largest among the highly educated.

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  • LoPalo, Melissa, 2019. "The effects of cash assistance on refugee outcomes," Journal of Public Economics, Elsevier, vol. 170(C), pages 27-52.
    • Handle: RePEc:eee:pubeco:v:170:y:2019:i:c:p:27-52
    DOI: 10.1016/j.jpubeco.2018.11.004
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    1. Matilda Kilström & Birthe Larsen & Elisabet Olme, 2023. "Temporary refugee protection and labor-market outcomes," Empirical Economics, Springer, vol. 65(4), pages 1895-1929, October.
    2. Jacob Nielsen Arendt & Christian Dustmann & Hyejin Ku, 2022. "Refugee migration and the labour market: lessons from 40 years of post-arrival policies in Denmark," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 531-556.
    3. Francesco Fasani & Tommaso Frattini & Maxime Pirot, 2023. "From Refugees to Citizens: Labor Market Returns to Naturalization," Development Working Papers 489, Centro Studi Luca d'Agliano, University of Milano, revised 11 Jun 2024.
    4. Hızıroğlu Aygün, Aysun & Kırdar, Murat Güray & Koyuncu, Murat & Stoeffler, Quentin, 2024. "Keeping refugee children in school and out of work: Evidence from the world's largest humanitarian cash transfer program," Journal of Development Economics, Elsevier, vol. 168(C).
    5. Hai‐Anh H. Dang & Trong‐Anh Trinh & Paolo Verme, 2023. "Do refugees with better mental health better integrate? Evidence from the Building a New Life in Australia longitudinal survey," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2819-2835, December.
    6. Ahrens, Achim & Casalis, Marine & Hangartner, Dominik & Sánchez, Rodrigo, 2024. "Cash-based interventions improve multidimensional integration outcomes of Venezuelan immigrants," World Development, Elsevier, vol. 181(C).
    7. Mask Joshua, 2020. "Consequences of immigrating during a recession: Evidence from the US Refugee Resettlement program," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-31, January.
    8. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2021. "Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2803-2854.
    9. Palsson, Craig, 2023. "The forces of path dependence: Haiti's refugee camps, 1937–2009," Explorations in Economic History, Elsevier, vol. 89(C).
    10. Jacob Nielsen Arendt, 2022. "Labor market effects of a work-first policy for refugees," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(1), pages 169-196, January.
    11. Morales, Camila, 2022. "Do refugee students affect the academic achievement of peers? Evidence from a large urban school district," Economics of Education Review, Elsevier, vol. 89(C).
    12. Ahrens, Achim & Beerli, Andreas & Hangartner, Dominik & Kurer, Selina & Siegenthaler, Michael, 2023. "The Labor Market Effects of Restricting Refugees' Employment Opportunities," IZA Discussion Papers 15901, Institute of Labor Economics (IZA).
    13. Bratu, Cristina & Martén, Linna & Ottosson, Lillit, 2023. "Individualized Benefits and Access to Active Labor Market Programs Boost Refugee Women’s Economic Integration," Working Paper Series 3/2023, Stockholm University, Swedish Institute for Social Research, revised 07 Aug 2024.
    14. Daniel Auer & Michaela Slotwinski & Achim Ahrens & Dominik Hangartner & Selina Kurer & Stefanie Kurt & Alois Stutzer, 2024. "Social Assistance and Refugee Crime," CESifo Working Paper Series 11051, CESifo.
    15. Seonho Shin, 2022. "Evaluating the Effect of the Matching Grant Program for Refugees: An Observational Study Using Matching, Weighting, and the Mantel-Haenszel Test," Journal of Labor Research, Springer, vol. 43(1), pages 103-133, March.
    16. Wonhyung Lee & Jeesoo Jung, 2024. "The Impact of Post-migration Support for Refugees’ Job Acquirement in the U.S," Journal of International Migration and Integration, Springer, vol. 25(3), pages 1645-1665, September.
    17. Cole, Matthew A. & Jabbour, Liza & Ozgen, Ceren & Yumoto, Hiromi, 2024. "Refugees' Economic Integration and Firms," IZA Discussion Papers 16828, Institute of Labor Economics (IZA).
    18. Matthew Freedman & Yoonjung Kim, 2022. "Quasi‐Experimental Evidence on the Effects of Expanding Cash Welfare," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(3), pages 859-890, June.
    19. Black, Sandra E. & Liepmann, Hannah & Remigereau, Camille & Spitz-Oener, Alexandra, 2022. "Government aid and child refugees’ economic success later in life: Evidence from post-WWII GDR refugees," Labour Economics, Elsevier, vol. 75(C).

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    Keywords

    Refugees; Immigration; Welfare;
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