DP2730 Settlement Policies and the Economic Success of Immigrants
|Author(s):||Olof Åslund, Per-Anders Edin, Peter Fredriksson|
|Publication Date:||March 2001|
|Keyword(s):||Immigration, Labour Market Outcomes, Settlement Policies|
|JEL(s):||J15, J18, R23|
|Programme Areas:||Labour Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=2730|
Many developed countries, e.g. the UK, Germany, and Sweden, use or have used settlement policies to direct the inflow of new immigrants away from immigrant dense metropolitan areas. We evaluate a reform of Swedish immigration policy that featured dispersion of refugee immigrants across the country, but also a change in the approach to labour market integration. We focus exclusively on how immigrants fared because of the policy. The results indicate that immigrants experienced fairly substantial long-run losses because of the policy. We also find that only a smaller share of this effect was associated with the dispersion of immigrants across regions. The larger share of the impact appears to stem from a common component that affected immigrants regardless of where they were located. Our somewhat speculative reading of this result is that it can be traced to a shift in emphasis of integration policy from a policy focusing on labour market assimilation to one of income support.