Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279011 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16313
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We analyze an immigration reform in Denmark that tightened refugee immigrants' eligibility criteria for permanent residency to incentivize their labor market attachment and acquisition of local language skills. Contrary to what the reform intended, the overall employment of those affected decreased while their average language proficiency remained largely unchanged. This was caused by a disincentive effect, where individuals with low pre-reform labor market performance reduced their labor supply. Our findings suggest that stricter permanent residency rules, rather than incentivizing refugees' skill investment, may decrease the efforts of those who believe they cannot meet the new requirements.
Subjects: 
immigrant assimilation
refugee integration
labor supply
language proficiency
human capital
JEL: 
J22
J24
J61
Document Type: 
Working Paper

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