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Refugee Benefit Cuts

Dustmann, Christian; Landerso, Rasmus; Andersen, Lars Højsgaard; (2024) Refugee Benefit Cuts. American Economic Journal: Economic Policy , 16 (2) pp. 406-441. 10.1257/pol.20220062. Green open access

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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.

Type: Article
Title: Refugee Benefit Cuts
Open access status: An open access version is available from UCL Discovery
DOI: 10.1257/pol.20220062
Publisher version: http://doi.org/10.1257/pol.20220062
Language: English
Additional information: This version is the author-accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
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/10188799
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