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Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory

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Author Info
Damm, Anna Piil (CIM, Aarhus School of Business)
Rosholm, Michael () (Institute of Local Government Studies (AKF), University of Aarhus and IZA Bonn)

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Abstract

This paper formulates a partial search model in which unemployed individuals simultaneously search for job and location of residence. Most importantly, we show that, ceteris paribus, a decrease in current place utility increases the transition rate into a new location of residence and the transition rate into employment outside the local labour market, but decreases the transition rate into local employment. Thus, a decrease in current place utility decreases the overall job-finding rate if the local reservation wage effect dominates. We argue that dispersal policies on refugee immigrants are characterized by low average values of current place utility. Hence, the model predicts that dispersal policies increase the geographical mobility rates of refugees and, for a sufficiently large local reservation wage effect, decrease their jobfinding rates.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 924.

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Length: 36 pages
Date of creation: Nov 2003
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Handle: RePEc:iza:izadps:dp924

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Related research
Keywords: job search residential search geographical mobility dispersal policy on refugees

Other versions of this item:

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Simpson, Wayne, 1980. "A simultaneous model of workplace and residential location incorporating job search," Journal of Urban Economics, Elsevier, vol. 8(3), pages 330-349, November. [Downloadable!] (restricted)
  2. Weinberg, Daniel H. & Friedman, Joseph & Mayo, Stephen K., 1981. "Intraurban residential mobility: The role of transactions costs, market imperfections, and household disequilibrium," Journal of Urban Economics, Elsevier, vol. 9(3), pages 332-348, May. [Downloadable!] (restricted)
  3. Linneman, Peter & Graves, Philip E., 1983. "Migration and job change: A multinomial logit approach," Journal of Urban Economics, Elsevier, vol. 14(3), pages 263-279, November. [Downloadable!] (restricted)
  4. Piil Damm, Anna, 2005. "Immigrants’ Location Preferences: Exploiting a Natural Experiment," Working Papers 05-2, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  5. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence," IZA Discussion Papers 925, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Michael Svarer & Michael Rosholm & Jacob Roland Munch, 2003. "Are Home Owners Really more Unemployed?," CAM Working Papers 2003-09, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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  7. Devine, Theresa J. & Kiefer, Nicholas M., 1993. "The empirical status of job search theory," Labour Economics, Elsevier, vol. 1(1), pages 3-24, June. [Downloadable!] (restricted)
  8. Zax, Jeffrey S, 1991. "The Substitution between Moves and Quits," Economic Journal, Royal Economic Society, vol. 101(409), pages 1510-21, November. [Downloadable!] (restricted)
  9. Åslund, Olof & Edin, Per-Anders & Fredriksson, Peter, 2001. "Settlement Policies and the Economic Success of Immigrants," CEPR Discussion Papers 2730, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Weinberg, Daniel H., 1979. "The determinants of intra-urban household mobility," Regional Science and Urban Economics, Elsevier, vol. 9(2-3), pages 219-246. [Downloadable!] (restricted)
  11. Piet Rietveld & Peter Nijkamp & Jos van Ommeren, 2000. "Job mobility, residential mobility and commuting: A theoretical analysis using search theory," The Annals of Regional Science, Springer, vol. 34(2), pages 213-232. [Downloadable!] (restricted)
  12. Sugden, Robert, 1980. "An application of search theory to the analysis of regional labour markets," Regional Science and Urban Economics, Elsevier, vol. 10(1), pages 43-51, March. [Downloadable!] (restricted)
  13. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November. [Downloadable!] (restricted)
  14. van den Berg, Gerard J, 1992. "A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job," Economic Journal, Royal Economic Society, vol. 102(414), pages 1116-33, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence," IZA Discussion Papers 925, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Arntz, Melanie, 2005. "The Geographical Mobility of Unemployed Workers : Evidence from West Germany," ZEW Discussion Papers 05-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Christian Dustmann & Teresa casey, 2005. "Intergenerational transmission of language capital and economic outcomes," CReAM Discussion Paper Series 0506, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
    Other versions:
  4. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence," Working Papers 04-20, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  5. Anna Piil Damm & Michael Rosholm, 2005. "Employment Effects of Spatial Dispersal of Refugees," CAM Working Papers 2005-03, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
    Other versions:
  6. Arntz, Melanie & Wilke, Ralf A., 2006. "Unemployment duration in Germany : individual and regional determinants of local job finding, migration and subsidized employment," ZEW Discussion Papers 06-92, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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