Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272704 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16077
Publisher: 
Institute of Labor Economics (IZA), Bonn
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 longerterm 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: 
labor market outcomes
welfare state
social assistance
labor demand
migration
JEL: 
E64
I30
J60
Document Type: 
Working Paper

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