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Employment Effects of Spatial Dispersal of Refugees

Listed author(s):
  • Anna Piil Damm

    (Institute of Economics, University of Copenhagen)

  • Michael Rosholm

    (Department of Economics, University of Aarhus)

Spatial dispersal policies may influence labour market integration of refugees through two mechanisms. First, it may affect the local job offer arrival rate, and second, it may affect place utility. We investigate the second mechanism theoretically by formulating a partial search model in which an individual searches simultaneously for a job and for a new residential location. The model predicts that the reservation wage for local jobs is decreasing in place utility. We argue that spatial dispersal policies decrease average place utility of refugees which decrease the transition rate into first job due to large local reservation wage effects. 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.

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File URL: http://www.econ.ku.dk/cam/wp0910/wp0406/2005-03.pdf/
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Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2005-03.

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Length: 35 pages
Date of creation: Apr 2005
Handle: RePEc:kud:kuieca:2005_03
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Web page: http://www.econ.ku.dk/CAM/
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  1. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
  2. 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;Western Regional Science Association, vol. 34(2), pages 213-232.
  3. 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.
  4. Barry Chiswick & Yew Lee & Paul Miller, 2005. "“Parents and Children Talk: English Language Proficiency within Immigrant Families”," Review of Economics of the Household, Springer, vol. 3(3), pages 243-268, 09.
  5. Hoyt Bleakley & Aimee Chin, 2008. "What Holds Back the Second Generation?: The Intergenerational Transmission of Language Human Capital Among Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 267-298.
  6. van Ours, Jan C. & Veenman, Justus, 2002. "From Parent to Child: Early Labor Market Experiences of Second-Generation Immigrants in the Netherlands," IZA Discussion Papers 649, Institute for the Study of Labor (IZA).
  7. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-170, April.
  8. Dustmann, C. & van Soest, A.H.O., 1998. "Language Fluency and Earnings : Estimation with Misclassified Language Indicators," Discussion Paper 1998-120, Tilburg University, Center for Economic Research.
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