Welfare Program Spillovers

Research output: Book/ReportReportResearchpeer-review

Abstract

Research on the social safety net examines its effects on recipients and their families. We show that these effects extend beyond recipients’ families. Using a regression discontinuity design and administrative data, we study a Danish policy that cut welfare benefits for refugees, increasing crime among affected individuals. Linking refugees to neighbors, we find increased crime among non-Danish neighbors, with spillovers persisting even after direct effects stabilize. Accounting for these spillovers raises the marginal value of public funds by 20%. We explore several mechanisms and find evidence consistent with peer effects among young individuals from the same country of origin.
Original languageEnglish
Place of PublicationCopenhagen
PublisherRockwool Fondens Forskningsenhed
Number of pages86
Publication statusPublished - May 2025
SeriesStudy Paper. The Rockwool Foundation Research Unit
Number243
ISSN0908-3979

Keywords

  • Welfare programs
  • Crime
  • Spillovers

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