Reducing income transfers to refugee immigrants: Does start-help help you start? |
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| Authors: | Michael Rosholm Rune Vejlin |
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| Institution: | 1. Department of Economics, Aarhus School of Business, Aarhus University, Hermodsvej 22, 8230 Aabyhøj, Denmark;2. School of Economics and Management, Aarhus University, Denmark;1. University of Potsdam, Germany;2. IZA, Bonn, Germany;3. DIW, Berlin, Germany;4. IAB, Nuremberg, Germany;5. Inter-American Development Bank, United States;1. Department of Environmental and Business Economics, University of Southern Denmark, Niels Bohrs Vej 9, 6700, Esbjerg, Denmark;2. Department of Political Science, Aarhus University, Bartholins Allé 7, 8000, Aarhus C, Denmark |
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| Abstract: | We estimate the effect of lowering income transfers to refugee immigrants in Denmark – labeled start-help – using a competing risk framework. Refugee immigrants obtaining residence permit before July 2002 received larger income transfers than those who obtained their residence permit later. Exploiting this ‘quasi-natural’ experiment, we find that the lower income transfer has a positive effect on the job-finding rate after two years in Denmark. We also find that the exit rate from the labour force is positively affected by start-help during the early phases of the integration process. Finally, we find that those with the poorest labour market prospects are the least responsive to the improvement in economic incentives. |
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