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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.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0605.

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Date of creation: Jun 2006
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Handle: RePEc:crm:wpaper:0605

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Keywords: Migration;

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References

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Citations

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Cited by:
  1. 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.
  2. 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.
  3. 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).
  4. 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.
  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.

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