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Project Citation: 

Agersnap, Ole, Jensen, Amalie, and Kleven, Henrik. Data and Code for: “The Welfare Magnet Hypothesis: Evidence from an Immigrant Welfare Scheme in Denmark.” Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-11-23. https://doi.org/10.3886/E118585V1

Project Description

Summary:  View help for Summary
We study the effects of welfare generosity on international migration using reforms of immigrant welfare benefits in Denmark. The first reform, implemented in 2002, lowered benefits for non-EU immigrants by about 50%, with no changes for natives or EU immigrants. The policy was later repealed and re-introduced. Based on a quasi-experimental research design, we find sizeable effects: the benefit reduction reduced the net flow of immigrants by about 5,000 people per year, and the subsequent repeal of the policy reversed the effect almost exactly. The implied elasticity of migration with respect to benefits equals 1.3. This represents some of the first causal evidence on the welfare magnet hypothesis.

Scope of Project

Subject Terms:  View help for Subject Terms population migration; unemployment benefits; migrants
JEL Classification:  View help for JEL Classification
      H20 Taxation, Subsidies, and Revenue: General
      H31 Fiscal Policies and Behavior of Economic Agents: Household
      J61 Geographic Labor Mobility; Immigrant Workers
Geographic Coverage:  View help for Geographic Coverage Denmark, Sweden, Norway, Finland
Time Period(s):  View help for Time Period(s) 1/1/1970 – 12/31/2019
Collection Date(s):  View help for Collection Date(s) 3/1/2019 – 5/27/2020
Universe:  View help for Universe Migrants from EU and non-EU countries to Denmark and other Nordic countries.
Data Type(s):  View help for Data Type(s) program source code
Collection Notes:  View help for Collection Notes Note that the majority of the data used for this project are restricted data from Danish population registers. These data can only be accessed through accredited research institutions in Denmark, and we are therefore unable to provide them here. For more information on this, see the ReadMe file.
We do include all the code used for the project, as well as those data files used in the paper that come from publicly accessible sources. These are data from other Nordic countries (Finland, Norway and Sweden) that are used in the cross-country analysis.

Methodology

Data Source:  View help for Data Source Statistics Denmark, 1980-2017 [Restricted data, not included here]
Statistics Finland, 1990-2018
Statistics Norway, 1970-2019
Statistics Sweden, 2000-2019
OECD, 1990-2017

See ReadMe-file for more detailed information on data sources, specific registers and tables used etc.
Unit(s) of Observation:  View help for Unit(s) of Observation Number of migrants by year and country of origin

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