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

  • Damm, Anna Piil

    ()

    (Aarhus School of Business)

  • Rosholm, Michael

    ()

    (Aarhus University)

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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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
Date of revision:
Handle: RePEc:iza:izadps:dp924
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  1. Munch, Jakob Roland & Rosholm, Michael & Svarer, Michael, . "Are Home Owners Really More Unemployed?," Economics Working Papers 2003-15, School of Economics and Management, University of Aarhus.
  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.
  3. 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.
  4. 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).
  5. 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.
  6. 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.
  7. 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.
  8. Weinberg, Daniel H., 1979. "The determinants of intra-urban household mobility," Regional Science and Urban Economics, Elsevier, vol. 9(2-3), pages 219-246.
  9. Devine, T.J. & Kiefer, N.M., 1990. "The Empirical Status Of Job Search Theory," Papers 4-90-1, Pennsylvania State - Department of Economics.
  10. 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.
  11. Zax, Jeffrey S, 1991. "The Substitution between Moves and Quits," Economic Journal, Royal Economic Society, vol. 101(409), pages 1510-21, November.
  12. 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.
  13. 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.
  14. A R Pickles & R B Davies, 1991. "The empirical analysis of housing careers: a review and a general statistical modelling framework," Environment and Planning A, Pion Ltd, London, vol. 23(4), pages 465-484, April.
  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.
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