Permanent Residency and Refugee Immigrants’ Skill Investment
分析了丹麦收紧难民永久居留资格的改革,发现改革反而降低了受影响者的就业,语言能力未提升,原因是低绩效者减少了劳动供给。
We analyze an immigration reform in Denmark that tightened refugee immigrants' eligibility criteria for permanent residency to incentivize their labor market attachment and acquisition of local language skills. Contrary to what the reform intended, the overall employment of those affected decreased while their average language proficiency remained largely unchanged. This was caused by a disincentive effect, where individuals with low pre-reform labor market performance reduced their labor supply. Our findings suggest that stricter permanent residency rules, rather than incentivizing refugees' skill investment, may decrease the efforts of those who believe they cannot meet the new requirements.