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Refugee Benefit Cuts

Author

Listed:
  • 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, 2023. "Refugee Benefit Cuts," CESifo Working Paper Series 10386, CESifo.
  • Handle: RePEc:ces:ceswps:_10386
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10386.pdf
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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

    Keywords

    social assistance; welfare state; labor market outcomes; labor demand; migration;
    All these keywords.

    JEL classification:

    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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