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Employment effects of spatial dispersal of refugees

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  • Anna Damm

    ()

  • Michael Rosholm

    ()

Abstract

Spatial dispersal policies may influence labour market integration of refugees through two mechanisms. First, it may affect the local job offer arrival rate, and second, it may affect place utility. We investigate the second mechanism theoretically by formulating a partial search model in which an individual searches simultaneously for a job and for a new residential location. The model predicts that the reservation wage for local jobs is decreasing in place utility. We argue that spatial dispersal policies decrease average place utility of refugees which decrease the transition rate into first job due to large local reservation wage effects. 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.

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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 8 (2010)
Issue (Month): 1 (March)
Pages: 105-146

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Handle: RePEc:kap:reveho:v:8:y:2010:i:1:p:105-146

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: Spatial dispersal; Refugees; Job search; Residential search; J64; J61; J68; J15;

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Citations

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Cited by:
  1. Martin Nordin & Dan-Olof Rooth, 2007. "The Income Gap Between Natives and Second Generation Immigrants in Sweden: Is Skill the Explanation?," CReAM Discussion Paper Series 0706, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Anna Piil Damm, 2006. "Ethnic Enclaves and Immigrant Labour Market Outcomes: Quasi-Experimental Evidence," CReAM Discussion Paper Series 0607, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. 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.
  4. Hatton, Timothy J., 2012. "Refugee and Asylum Migration to the OECD: A Short Overview," IZA Discussion Papers 7004, Institute for the Study of Labor (IZA).
  5. 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.

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