Work

Welfare Program Spillovers

Year: 2025

Type: report

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.

Source: CBS Research Portal (Copenhagen Business School)

Authors: Jinkins, David, Kuka, Elira, Labanca, Claudio

Language: English

Topic: Crime Patterns and Interventions

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, No poverty, Reduced inequalities

Open Access status: green

OpenAlex ID: W7126661461

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