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Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence

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  • Damm, Anna Piil

    ()
    (Aarhus School of Business)

  • Rosholm, Michael

    ()
    (Aarhus University)

Abstract

How do dispersal policies affect labour market integration of refugee immigrants subjected to such policy? To investigate this, we estimate the effects of location characteristics and the average effect of geographical mobility on the hazard rate into first job of refugee immigrants subjected to the Danish Dispersal Policy 1986-1998. We correct for selection into relocation to another municipality by joint estimation of the duration of the first non-employment spell and time until relocation. The main estimation results are as follows: First, the hazard rate into first job is increasing in the concentration of fellow countrymen and decreasing in the regional unemployment rate, the size of the local population and the percentage of immigrants in the local population. The two latter findings support dispersal policies. The two former findings emphasize that refugees should be dispersed in big clusters of refugees of the same ethnic origin across regions with low unemployment. Second, on average, geographical mobility had large, positive effects on the job finding rate, suggesting that either relocations were carried out to improve employment prospects, or they were carried out to improve place utility and thereby lower the reservation wage. Hence, restrictions on placed refugees’ subsequent migration (or on their initial choice of location) would hamper labour market integration.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 925.

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Length: 69 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:iza:izadps:dp925

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Keywords: dispersal policies; employment effects; geographical mobility; refugee immigrants;

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References

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  1. Rosholm, M. & Scott, K. & Husted, L., 2000. "The Times they Are A-Changin' . Organizational Change and Immigrnat Employment Opportunities in Scandinavia," Papers 00-07, Centre for Labour Market and Social Research, Danmark-.
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  12. 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.
  13. Bauer, Thomas K. & Epstein, Gil S. & Gang, Ira N., 2002. "Herd Effects or Migration Networks? The Location Choice of Mexican Immigrants in the U.S," IZA Discussion Papers 551, Institute for the Study of Labor (IZA).
  14. Lillard, Lee A., 1993. "Simultaneous equations for hazards : Marriage duration and fertility timing," Journal of Econometrics, Elsevier, vol. 56(1-2), pages 189-217, March.
  15. 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.
  16. Chiswick, Barry R. & Miller, Paul W., 2002. "Do Enclaves Matter in Immigrant Adjustment?," IZA Discussion Papers 449, Institute for the Study of Labor (IZA).
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  19. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. 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.
  2. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA).
  3. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Theory," Working Papers 05-1, University of Aarhus, Aarhus School of Business, Department of Economics.

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