Reducing immigrant welfare – The Marginal REVOLUTION

That’s a popular policy, including libertarian open-border types, but it doesn’t always work well:

This paper examines the consequences of a reduction in the maximum welfare benefit for children in affected families. The welfare cuts were aimed at elderly refugees who found accommodation in Denmark, and reduced their income by 30 percent on average within the first five years. We show that children exposed to reduced welfare during the preschool and school years earned lower GPAs, experienced reduced levels of welfare and overall education, and experienced lower employment and income as adults. Children in their youth during the period of exposure face a significant increase in the likelihood of violent and property crime.

That’s from a new AEJ piece by Christian Dustmann, Rasmus Landersø, and Lars Højsgaard Andersen, and here’s a small gated copy of the work. A variety of different groups won’t like it when I say this, but at least sometimes immigration and the welfare state it’s perfect.



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