European Business Schools Librarian's Group
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
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
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