Scandinavian Working Papers in Economics

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

No 05-1: Employment Effects of Dispersal Policies on Refugee Immigrants: Theory

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: This paper formulates a partial search model in which unemployed individuals simultaneously search for job and location of residence. Most importantly, we show that, ceteris paribus, a decrease in current place utility increases the transition rate into a new location of residence and the transition rate into employment outside the local labour market, but decreases the transition rate into local employment. Thus, a decrease in current place utility decreases the overall job-finding rate if the local reservation wage effect dominates. We argue that dispersal policies on refugee immigrants are characterised by low average values of current place utility. Hence, the model predicts that dispersal policies increase the geographical mobility rates of refugees and, for a sufficiently large local reservation wage effect, decrease their job-finding rates.

Keywords: Job Search; Residential Search; Geographical Mobility; Dispersal Policy on Refugees

JEL-codes: J15; J64; J68

38 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

Full text files

05-1_apdmr.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:30:46.