Abstract
The United States receives tens of thousands of refugees per year, many of whom arrive with few resources. The federal refugee resettlement program aims to rapidly move refugees into employment and self-sufficiency. This causes refugees to undergo a search and matching process upon arrival that may be affected by cash assistance generosity. This paper exploits variation in cash benefit levels for welfare programs available to refugees after resettlement to identify the effects of welfare generosity on long-term labor market outcomes. I find that an additional $100 in TANF maximum monthly benefits is associated with a 5–8% increase in wages, but no significant change in the probability of employment. The effects are the largest among the highly educated.
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