Abstract
Refugees subjected to a spatial dispersal tend to be assigned to a location outside the immigrant-dense cities. We argue that such locations are associated with low place utility. Our partial equilibrium search model with simultaneous job and residential location search predicts that the reservation wage for local jobs decreases with place utility. We test the theoretical prediction by estimating the effects of characteristics of the location of assignment on the transition rate into the first job. Our sample is male refugees aged 30–59 who were subjected to the Danish spatial dispersal policy carried out in the period 1986–1998. We find little empirical support for the theoretical prediction. Empirically we find that the transition rate into the first job decreases with the local population size and the number of immigrants while the effect of the local number of co-nationals is insignificant.
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