Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 04-20: Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence

Anna Piil Damm () and Michael Rosholm ()
Additional contact information
Anna Piil Damm: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Michael Rosholm: Department of Economics, University of Aarhus, Postal: Department of Economics, University of Aarhus, Building 326, 8000 Aarhus C, Denmark

Abstract: Do dispersal policies on refugee immigrants promote their labour market outcomes? To investigate this we estimate the effects of location characteristics and the average effect of geographical mobility on the hazard rate into first job of refugee immigrants subjected to the Danish Dispersal Policy 1986-1998. We correct for selection into relocation to another municipality by joint estimation of the duration of the first non-employment spell and time until relocation. We find, first, that the hazard rate into first job is decreasing in the local population size and the local share of immigrants. These findings support dispersal policies. Second, on average geographical mobility had large, positive effects on the hazard rate into first job, suggesting that restrictions on placed refugees’ subsequent out-migration would hamper labour market integration of ref

Keywords: Dispersal Policies on Refugees; Employment Effects; Migration

JEL-codes: J15; J61; J64

69 pages, September 2, 2005

Note: Published as “Employment Effects of Spatial Dispersal of Refugees”, with M. Rosholm. Review of Economics of the Household, 2010, 8(1): 105-146

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