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Home | Events Archive | Refugee Benefit Cuts

Refugee Benefit Cuts

  • Series
  • Speaker(s)
    Rasmus Landersø (Rockwool Foundation, Denmark)
  • Field
    Empirical Microeconomics
  • Location
    Tinbergen Institute Amsterdam, room 1.01
  • Date and time

    November 23, 2021
    16:00 - 17:00

Abstract: Denmark’s 2002 Start Aid welfare reform lowered benefits to refugee immigrants by 40% and has many implications for the optimal design of policies discussed today. The reform induced a sharp albeit short-lived increases in average labor earnings and employment, but also a strong female labor force withdrawal due to disincentives imbedded in the policy. Combining two research designs, we provide first causal evidence that reform effects depend crucially on local demand for the type of skills refugees offer. The reform’s large reduction in average disposable income also induced undesired effects such as increased crime among adults and teenagers.

Please send an email to Nadine Ketel or Paul Muller if you are interested to participate in this seminar (series).