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Time: 1:33 am

Results for public welfare and economic assistance (denmark)

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Author: Fallesen, Peter

Title: The Effect of Workfare Policy on Crime

Summary: In this paper, we estimate the effect of Danish workfare policy on crime by exploiting two exogenous welfare policy changes. First, we use a unique policy experiment that began in 1987 by an innovative mayor of the Danish city of Farum, where he imposed a 100 % work or training requirement for all welfare recipients immediately from the date of enrollment. By comparing the changes in crime rates among the unemployment uninsured workers, who are potential welfare recipients, in Farum before and after 1987 with that of the rest of Denmark, we identify the effect of workfare on the crime rate. Second, we examine the effect of a series of national welfare reforms introduced during the 1990s. Those reforms strengthened the work requirement for the welfare recipients younger than 30 and were introduced gradually, starting with younger people rst. We exploit the di erential introduction of workfare across different age groups and the difference in municipality level enforcement as the exogenous variation. Our results show a dramatic decline in the arrest rate among unemployment uninsured after the introduction of the stronger workfare requirements, both in Farum and at the national level. But we found no policy effect on the unemployment insured, who do not receive welfare when unemployed. Those results imply a strong and signi cant crime reducing effect of the workfare policy.

Details: Kingston, ONT: Department of Economics, Queen's University, 2011. 64p.

Source: Internet Resource: http://qed.econ.queensu.ca/pub/faculty/imai/papers/Farum2.pdf

Year: 2011

Country: Denmark

URL: http://qed.econ.queensu.ca/pub/faculty/imai/papers/Farum2.pdf

Shelf Number: 123769

Keywords:
Economics and Crime
Employment and Crime
Public Welfare and Economic Assistance (Denmark)
Unemployment