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Reducing income transfers to refugee immigrants: Does start-help help you start?

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  • Rosholm, Michael
  • Vejlin, Rune

Abstract

We estimate the effect of lowering income transfers to refugee immigrants in Denmark - labeled start-help - using a competing risk framework. Refugee immigrants obtaining residence permit before July 2002 received larger income transfers than those who obtained their residence permit later. Exploiting this 'quasi-natural' experiment, we find that the lower income transfer has a positive effect on the job-finding rate after two years in Denmark. We also find that the exit rate from the labour force is positively affected by start-help during the early phases of the integration process. Finally, we find that those with the poorest labour market prospects are the least responsive to the improvement in economic incentives.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 1 (January)
Pages: 258-275

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Handle: RePEc:eee:labeco:v:17:y:2010:i:1:p:258-275

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Immigrants Benefit reduction Unemployment duration;

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References

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Citations

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Cited by:
  1. Rosholm, Michael & Vejlin, Rune Majlund, 2007. "Reducing Income Transfers to Refugee Immigrants: Does Starthelp Help You Start?," IZA Discussion Papers 2720, Institute for the Study of Labor (IZA).
  2. Peder J. Pedersen, 2013. "Immigration and welfare state cash benefits: the Danish case," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 113-125, February.
  3. Matti Sarvimaki & Kari Hamalainen, 2010. "Assimilating Immigrants: The Impact of an Integration Program," CReAM Discussion Paper Series 1019, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Aldashev, Alisher & Thomsen, Stephan L. & Walter, Thomas, 2010. "Short-term training programs for immigrants: do effects differ from natives and why?," ZEW Discussion Papers 10-021, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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