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The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark

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  • Clausen, Jens
  • Heinesen, Eskil
  • Hummelgaard, Hans
  • Husted, Leif
  • Rosholm, Michael

Abstract

We analyse the effect of active labour-market programmes on the hazard rate into regular employment for newly arrived immigrants using the timing-of-events duration model. We take account of language course participation and progression in destination country language skills. We use rich administrative data from Denmark. We find substantial lock-in effects of participation in active labour-market programmes. Post programme effects on the hazard rate to regular employment are significantly positive for wage subsidy programmes, but not for other types of programmes. For language course participants, improvement in language proficiency has significant and substantial positive effects on the hazard rate to employment.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 16 (2009)
Issue (Month): 4 (August)
Pages: 409-417

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Handle: RePEc:eee:labeco:v:16:y:2009:i:4:p:409-417

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Programme evaluation Duration analysis Language skills;

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References

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  1. Rafael Lalive & JanC. vanOurs & Josef Zweimüller, 2008. "The Impact of Active Labour Market Programmes on The Duration of Unemployment in Switzerland," Economic Journal, Royal Economic Society, vol. 118(525), pages 235-257, 01.
  2. Chiswick, Barry R. & Miller, Paul W., 2002. "The Complementarity of Language and Other Human Capital: Immigrant Earnings in Canada," IZA Discussion Papers 451, Institute for the Study of Labor (IZA).
  3. Gerard J. van den Berg & Bas van der Klaauw & Jan C. van Ours, 2004. "Punitive Sanctions and the Transition Rate from Welfare to Work," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 211-241, January.
  4. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460 Elsevier.
  5. Bruno Crépon & Muriel Dejemeppe & Marc Gurgand, 2005. "Counseling the Unemployed : Does it Lower Unemployment Duration and Recurrence ?," Working Papers 2005-23, Centre de Recherche en Economie et Statistique.
  6. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute for the Study of Labor (IZA).
  7. Kluve, Jochen & Schneider, Hilmar & Uhlendorff, Arne & Zhao, Zhong, 2007. "Evaluating Continuous Training Programs Using the Generalized Propensity Score," IZA Discussion Papers 3255, Institute for the Study of Labor (IZA).
  8. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  9. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 409-448, October.
  10. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2002. "The Effect of Benefit Sanctions on the Duration of Unemployment," CEPR Discussion Papers 3311, C.E.P.R. Discussion Papers.
  11. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "Long-run effects of public sector sponsored training in West Germany," IAB Discussion Paper 200503, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  12. Richardson, Katarina & van den Berg, Gerard J., 2002. "The effect of vocational employment training on the individual transition rate from unemployment to work," Working Paper Series 2002:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  13. Kluve, Jochen & Schneider, Hilmar & Uhlendorff, Arne & Zhao, Zhong, 2007. "Evaluating continuous training programs using the generalized propensity score1," Technical Reports 2007,39, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
  14. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  15. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
  16. Abbring, Jaap H. & Berg, Gerard J. van den & Ours, Jan C. van, 1996. "The effect of unemployment insurance sanctions on the transition rate from unemployment to employment," Serie Research Memoranda 0038, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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Citations

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Cited by:
  1. Stephan L. Thomsen & Thomas Walter, 2010. "Temporary Extra Jobs for Immigrants: Merging Lane to Employment or Dead‐End Road in Welfare?," LABOUR, CEIS, vol. 24(s1), pages 114-140, December.
  2. Rinne, Ulf, 2012. "The Evaluation of Immigration Policies," IZA Discussion Papers 6369, Institute for the Study of Labor (IZA).
  3. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
  4. Rosholm, Michael & Vejlin, Rune, 2010. "Reducing income transfers to refugee immigrants: Does start-help help you start?," Labour Economics, Elsevier, vol. 17(1), pages 258-275, January.
  5. Peder J. Pedersen, 2013. "Immigration and welfare state cash benefits: the Danish case," International Journal of Manpower, Emerald Group Publishing, vol. 34(2), pages 113-125, February.
  6. Butschek, Sebastian & Walter, Thomas, 2013. "What active labour market programmes work for immigrants in Europe? A meta-analysis of the evaluation literature," ZEW Discussion Papers 13-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Aldashev, Alisher & Thomsen, Stephan L. & Walter, Thomas, 2010. "Short-term training programs for immigrants: do effects differ from natives and why?," ZEW Discussion Papers 10-021, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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