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Project Citation: 

Dustmann, Christian, Landersø, Rasmus, and Andersen, Lars Højsgaard. Code for: Unintended Consequences of Welfare Cuts on Children and Adolescents. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-08-20. https://doi.org/10.3886/E195402V1

Project Description

Summary:  View help for Summary This paper studies the effects of a large welfare benefit reduction on the children in the affected families. The welfare cut targeted adult refugees who received residency in Denmark, and it reduced their disposable income by 30 percent on average over the first five years. We show that children exposed to the welfare cut during preschool and school-age obtained lower GPAs, experienced reduced well-being and overall education levels, and suffered lower employment and earnings as adults. Children in their teens at exposure faced large increases in conviction probabilities for violent and property crimes.
Funding Sources:  View help for Funding Sources ROCKWOOL Foundation; European Research Council (ERC) Advanced Grant (MCLPS) (833861); DFG (1024/1-2 AOBJ:642097); Norface Welfare State Futures program

Scope of Project

Subject Terms:  View help for Subject Terms Social assistance; welfare state; education; crimes; inequality
JEL Classification:  View help for JEL Classification
      I24 Education and Inequality
      I30 Welfare, Well-Being, and Poverty: General
      J10 Demographic Economics: General
      K14 Criminal Law
Geographic Coverage:  View help for Geographic Coverage Denmark
Time Period(s):  View help for Time Period(s) 1/1/2001 – 12/31/2020
Collection Date(s):  View help for Collection Date(s) 1/1/2001 – 12/31/2022
Universe:  View help for Universe Refugees recieving residency in Denmark between 2001 and 2003 followed until 2020 augmented by full population data from Denmark.
Data Type(s):  View help for Data Type(s) administrative records data

Methodology

Response Rate:  View help for Response Rate Administrative data
Data Source:  View help for Data Source Administrative data from Statistics Denmark supplemented by test score data from the Ministry of Children and Education (processed by Statistics Denmark)
Weights:  View help for Weights individual level
Unit(s) of Observation:  View help for Unit(s) of Observation individual

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