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Permanent Residency and Refugee Immigrants' Skill Investment

Arendt, Jacob; Dustmann, Christian; Ku, Hyejin; (2023) Permanent Residency and Refugee Immigrants' Skill Investment. Journal of Labor Economics 10.1086/726433. (In press). Green open access

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Abstract

We analyze an immigration reform in Denmark that tightened refugee immigrants’eligibility criteria for permanent residency to incentivize their labor market attachment and acquisition of local language skills. Contrary to what the reform intended, the overall employment of those affected decreased while their average language proficiency remained largely unchanged. This was caused by a disincentive effect, where individuals with low pre-reform labor market performance reduced their labor supply. Our findings suggest that stricter permanent residency rules, rather than incentivizing refugees’ skill investment, may decrease the efforts of those who believe they cannot meet the new requirements.

Type: Article
Title: Permanent Residency and Refugee Immigrants' Skill Investment
Open access status: An open access version is available from UCL Discovery
DOI: 10.1086/726433
Publisher version: https://doi.org/10.1086/726433
Language: English
Additional information: Copyright © 2023 The University of Chicago. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0), which permits non-commercial reuse of the work with attribution. For commercial use, contact journalpermissions@press.uchicago.edu.
Keywords: Immigrant assimilation, refugee integration, labor supply, language proficiency, human capital
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10170502
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