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

Author

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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.

Suggested Citation

  • 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).
  • Handle: RePEc:iza:izadps:dp925
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    References listed on IDEAS

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    Cited by:

    1. Melanie Arntz & Ralf Wilke, 2009. "Unemployment Duration in Germany: Individual and Regional Determinants of Local Job Finding, Migration and Subsidized Employment," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 43-61.
    2. 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.
    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.
    4. 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).

    More about this item

    Keywords

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

    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
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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