TY  - RPRT
        AU  - Arendt, Jacob Nielsen
AU  - Dustmann, Christian
AU  - Ku, Hyejin
        TI  - Permanent Residency and Refugee Immigrants' Skill Investment
        PY  - 2023/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16313
        UR  - https://www.iza.org/publications/dp16313
        AB  - 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.
        KW  - labor supply
KW  - refugee integration
KW  - immigrant assimilation
KW  - language proficiency
KW  - human capital
        ER  -