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Employment Effects of Spatial Dispersal of Refugees

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  • Anna Piil Damm

    (CAM and Department of Economics, Aarhus School of Business)

  • Michael Rosholm

    (Department of Economics, Aarhus School of Business)

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.

Suggested Citation

  • Anna Piil Damm & Michael Rosholm, 2006. "Employment Effects of Spatial Dispersal of Refugees," RF Berlin - CReAM Discussion Paper Series 0605, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:0605
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    Cited by:

    1. Azlor, Luz & Damm, Anna Piil & Schultz-Nielsen, Marie Louise, 2020. "Local labour demand and immigrant employment," Labour Economics, Elsevier, vol. 63(C).
    2. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2022. "(The Struggle for) Refugee integration into the labour market: evidence from Europe [Cashier or consultant? Entry labor market conditions, field of study, and career success]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 351-393.
    3. Fabian Eckert & Conor Walsh & Mads Hejlesen, 2018. "The Return to Big City Experience: Evidence from Danish Refugees," 2018 Meeting Papers 1214, Society for Economic Dynamics.
    4. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2017. "The (Struggle for) Labour Market Integration of Refugees: Evidence from European Countries," RF Berlin - CReAM Discussion Paper Series 1716, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Damm, Anna Piil, 2014. "Neighborhood quality and labor market outcomes: Evidence from quasi-random neighborhood assignment of immigrants," Journal of Urban Economics, Elsevier, vol. 79(C), pages 139-166.
    6. Eckert, Fabian & Hejlesen, Mads & Walsh, Conor, 2022. "The return to big-city experience: Evidence from refugees in Denmark," Journal of Urban Economics, Elsevier, vol. 130(C).
    7. Julia Bock-Schappelwein & Peter Huber, 2015. "Auswirkungen einer Erleichterung des Arbeitsmarktzuganges für Asylsuchende in Österreich," WIFO Studies, WIFO, number 59410.
    8. Adriana Cardozo Silva & Yuliya Kosyakova & Aslıhan Yurdakul, 2023. "Gendered Implications of Restricted Residence Obligation Policies on Refugees’ Employment in Germany," SOEPpapers on Multidisciplinary Panel Data Research 1203, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. 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.
    10. Campo, Francesco & Giunti, Sara & Mendola, Mariapia & Tura, Giulia, 2023. "Political Backlash to Refugee Settlement: Cultural and Economic Drivers," IZA Discussion Papers 16245, Institute of Labor Economics (IZA).
    11. Timothy J. Hatton, 2013. "Refugee and asylum migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 24, pages 453-469, Edward Elgar Publishing.
    12. Eva Arceo, 2010. "Job Search, Social Interactions and Labor Market Performance of Low-Skilled Immigrants," Working Papers DTE 489, CIDE, División de Economía.
    13. Foged, Mette & van der Werf, Cynthia, 2023. "Access to language training and the local integration of refugees," Labour Economics, Elsevier, vol. 84(C).
    14. Paolo VERME, 2016. "The Economics Of Forced Displacement: An Introduction," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 141-163.
    15. Timothy J. Hatton, 2012. "Refugee and Asylum Migration to the OECD: A Short Overview," CEPR Discussion Papers 658, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    16. Martin Nordin & Dan-Olof Rooth, 2007. "The Income Gap Between Natives and Second Generation Immigrants in Sweden: Is Skill the Explanation?," RF Berlin - CReAM Discussion Paper Series 0706, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    17. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "Mobility Assistance Programmes for Unemployed Workers, Job Search Behaviour and Labour Market Outcomes," IZA Discussion Papers 11169, Institute of Labor Economics (IZA).
    18. Anders Boman, 2011. "The Mobility of Immigrants and Natives: Evidence from Internal Migration Following Job Displacement," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 283-297.
    19. Andritzky, Jochen & Aretz, Bodo & Christofzik, Désirée I. & Schmidt, Christoph M., 2016. "Influx of refugees: Integration as a key challenge," Working Papers 09/2016, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    20. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    21. Devillanova, Carlo, 2008. "Social networks, information and health care utilization: Evidence from undocumented immigrants in Milan," Journal of Health Economics, Elsevier, vol. 27(2), pages 265-286, March.
    22. Brücker, Herbert & Hauptmann, Andreas & Jaschke, Philipp, 2020. "Beschränkungen der Wohnortwahl für anerkannte Geflüchtete: Wohnsitzauflagen reduzieren die Chancen auf Arbeitsmarktintegration (Restrictions on the choice of residence for recognized refugees: Residen," IAB-Kurzbericht 202003, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    23. Julia Bock-Schappelwein & Peter Huber, 2016. "Zur Arbeitsmarktintegration von Asylsuchenden in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(3), pages 157-169, March.
    24. Peter Huber & Marian Fink & Thomas Horvath, 2020. "Data Sources on Migrants' Labour Market and Education Integration in Austria," WIFO Working Papers 613, WIFO.
    25. Berger, Johannes & Strohner, Ludwig & Thomas, Tobias, 2017. "Auswirkungen der Fluchtmigration auf Wachstum und Beschäftigung in Österreich," Policy Notes 13, EcoAustria – Institute for Economic Research.

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    More about this item

    Keywords

    Migration;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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