American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Unintended Consequences of Welfare Cuts on Children and Adolescents
American Economic Journal: Applied Economics
vol. 16,
no. 4, October 2024
(pp. 161–85)
Abstract
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.Citation
Dustmann, Christian, Rasmus Landersø, and Lars Højsgaard Andersen. 2024. "Unintended Consequences of Welfare Cuts on Children and Adolescents." American Economic Journal: Applied Economics, 16 (4): 161–85. DOI: 10.1257/app.20230519Additional Materials
JEL Classification
- I26 Returns to Education
- I31 General Welfare; Well-Being
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J31 Wage Level and Structure; Wage Differentials
- K42 Illegal Behavior and the Enforcement of Law
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