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Refugee Benefit Cuts

Author

Listed:
  • Christian Dustmann

    (University College London)

  • Rasmus Landerso

    (Rockwool Foundation)

  • Lars Hojsgaard Andersen

    (Rockwool Foundation)

Abstract

This paper analyzes the effects of Denmark’s Start Aid welfare reform that targets refugees. Implemented in 2002, it enables us to study not only the reform’s immediate effects, but also its longer-term consequences, and its repeal a decade later. The reform-induced large transfer cuts led to an increase in employment rates, but only in the short run. Overall, the reform increased poverty rates and led to a rise in subsistence crime. Moreover, local demand conditions generate substantial heterogeneity in the reform’s effects on immediate and longer-term employment.

Suggested Citation

  • Christian Dustmann & Rasmus Landerso & Lars Hojsgaard Andersen, 2023. "Refugee Benefit Cuts," RF Berlin - CReAM Discussion Paper Series 2305, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:2305
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    File URL: https://www.cream-migration.org/publ_uploads/CDP_05_23.pdf
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    Keywords

    Social assistance; welfare state; labor market outcomes; labor demand; migration.;
    All these keywords.

    JEL classification:

    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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