Consequences of a welfare benefit reduction for refugee families on children's school absence and crime

I investigate the effect of lowering welfare benefits for refugees on children's outcomes in Denmark. For identification, I exploit a reform that gave refugees lower benefits if they were granted residency after September 2015. The exact date of residency is plausible random due to the nature of the asylum process. By using Danish register data, I compare children who were granted residency before and after the benefit reduction and show that reform reduced household income by 22%. Secondly, I find a 19% increase in absence from primary school, driven by an increase in residual absence.