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Unintended Consequences of Welfare Cuts on Children and Adolescents

Dustmann, Christian; Landerso, Rasmus; Andersen, Lars; (2024) Unintended Consequences of Welfare Cuts on Children and Adolescents. American Economic Journal: Applied (In press).

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Abstract

This paper studies the effects of a large welfare benefit reduction on the children in the affected families. The welfare cut targeted adult refugees who received residency in Denmark, and it reduced their disposable income by 30 percent on average over the first five years. We show that children exposed to the welfare cut during preschool and school-age obtained lower GPAs, experienced reduced wellbeing and overall education levels, and suffered lower employment and earnings as adults. Children in their teens at exposure faced large increases in conviction probabilities for violent and property crimes.

Type: Article
Title: Unintended Consequences of Welfare Cuts on Children and Adolescents
Publisher version: https://www.aeaweb.org/journals/app
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/10188800
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