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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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    Cited by:

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    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 [‘The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation’]," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 531-556.
    3. Fasani, Francesco & Frattini, Tommaso & Pirot, Maxime, 2023. "From Refugees to Citizens: Labor Market Returns to Naturalization," IZA Discussion Papers 16651, Institute of Labor Economics (IZA).
    4. 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.
    5. 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.
    6. 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.
    7. Palsson, Craig, 2023. "The forces of path dependence: Haiti's refugee camps, 1937–2009," Explorations in Economic History, Elsevier, vol. 89(C).
    8. 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.
    9. 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).
    10. 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).
    11. 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.
    12. 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.
    13. Ahrens, Achim & Hangartner, Dominik & Casalis, Marine & Sánchez, Rodrigo, 2023. "Cash-Based Interventions Improve Multidimensional Integration Outcomes of Venezuelan Immigrants," SocArXiv 5sh8a, Center for Open Science.
    14. 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.
    15. 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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