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Unintended Consequences of Welfare Cuts on Children and Adolescents

Author

Listed:
  • Dustmann, Christian

    (University College London)

  • Landersø, Rasmus

    (Rockwool Foundation Research Unit)

  • Andersen, Lars Højsgaard

    (Rockwool Foundation Research Unit)

Abstract

This paper studies the effects of a large welfare benefit reduction on the children in the affected families. The welfare cut targeted adult refugees who received residency in Denmark, and it reduced their disposable income by 30 percent on average over the first five years. We show that children exposed to the welfare cut during preschool and school-age obtained lower GPAs, experienced reduced well-being and overall education levels, and suffered lower employment and earnings as adults. Children in their teens at exposure faced large increases in conviction probabilities for violent and property crimes.

Suggested Citation

  • Dustmann, Christian & Landersø, Rasmus & Andersen, Lars Højsgaard, 2024. "Unintended Consequences of Welfare Cuts on Children and Adolescents," IZA Discussion Papers 17244, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17244
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    Keywords

    crime; welfare state; social assistance; education; inequality;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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