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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.

Suggested Citation

  • Anna Piil Damm & Michael Rosholm, 2006. "Employment Effects of Spatial Dispersal of Refugees," CReAM Discussion Paper Series 0605, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:0605
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    Citations

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    Cited by:

    1. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    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. Fasani, Francesco & Frattini, Tommaso & Minale, Luigi, 2018. "(The Struggle for) Refugee Integration into the Labour Market: Evidence from Europe," IZA Discussion Papers 11333, Institute for the Study of Labor (IZA).
    4. Julia Bock-Schappelwein & Peter Huber, 2016. "Integrating Asylum Seekers in the Austrian Labour Market," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(3), pages 157-169, March.
    5. 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).
    6. Paolo VERME, 2016. "The Economics Of Forced Displacement: An Introduction," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 141-163.
    7. Anders Boman, 2011. "The Mobility of Immigrants and Natives: Evidence from Internal Migration Following Job Displacement," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 283-297.
    8. 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.
    9. Timothy J. Hatton, 2013. "Refugee and asylum migration," Chapters,in: International Handbook on the Economics of Migration, chapter 24, pages 453-469 Edward Elgar Publishing.
    10. Nordin, Martin & Rooth, Dan-Olof, 2007. "The Income Gap Between Natives and Second Generation Immigrants in Sweden: Is Skill the Explanation?," IZA Discussion Papers 2759, Institute for the Study of Labor (IZA).
    11. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2017. "The (Struggle for) Labour Market Integration of Refugees: Evidence from European Countries," CReAM Discussion Paper Series 1716, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    12. Eva Arceo, 2010. "Job Search, Social Interactions and Labor Market Performance of Low-Skilled Immigrants," Working papers DTE 489, CIDE, División de Economía.

    More about this item

    Keywords

    Migration;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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