Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272030 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10386
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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.
Subjects: 
social assistance
welfare state
labor market outcomes
labor demand
migration
JEL: 
E64
I30
J60
Document Type: 
Working Paper
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