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Employment effects of spatial dispersal of refugees

Piil Damm, A.; Rosholm, M.; (2006) Employment effects of spatial dispersal of refugees. (Discussion Paper Series 05/06). Centre for Research and Analysis of Migration: London, UK. Green open access

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Abstract

We argue that spatial dispersal policies on refugees and asylum seekers influence labour market assimilation of refugees through two mechanisms: first, the local job offer arrival rate and, second, place utility. Our partial search model with simultaneous job and residential location search predicts that the reservation wage for local jobs decreases with place utility. We argue that spatial dispersal decreases average place utility of refugees which decreases the transition rate into first job due to large local reservation wages. 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.

Type: Working / discussion paper
Title: Employment effects of spatial dispersal of refugees
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.econ.ucl.ac.uk/cream/publicationsdiscus...
Language: English
Keywords: JEL classification: J64, J61, J68, J15. Spatial dispersal, refugees, job search, residential search
URI: https://discovery.ucl.ac.uk/id/eprint/14306
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