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Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs

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  • Matti Sarvimäki
  • Kari Hämäläinen

Abstract

We examine the impact of restructuring active labor market programs for unemployed immigrants in Finland. Exploiting a discontinuity in the phase-in rules of the reform, we find that it increased compliers' cumulative earnings by 47% over a 10-year follow-up period. We attribute these improvements to a more efficient use of existing resources. The reform did not affect total days in training, but it did modify the content toward training specifically designed for immigrants.

Suggested Citation

  • Matti Sarvimäki & Kari Hämäläinen, 2016. "Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 479-508.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/683667
    DOI: 10.1086/683667
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    Cited by:

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    4. Foged, Mette & van der Werf, Cynthia, 2023. "Access to Language Training and the Local Integration of Refugees," IDB Publications (Working Papers) 12862, Inter-American Development Bank.
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    7. Nick Drydakis, 2022. "Improving Entrepreneurs’ Digital Skills and Firms’ Digital Competencies through Business Apps Training: A Study of Small Firms," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    8. Silliman, Mikko & Virtanen, Hanna, 2019. "Labor Market Returns to Vocational Secondary Education," ETLA Working Papers 65, The Research Institute of the Finnish Economy.
    9. Dahlberg, Matz & Egebark, Johan & Vikman, Ulrika, 2023. "Long-run integration of refugees: RCT evidence from a Swedish early intervention program," Working Paper Series 2023:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Fasani, Francesco & Frattini, Tommaso & Pirot, Maxime, 2023. "From Refugees to Citizens: Labor Market Returns to Naturalization," IZA Discussion Papers 16651, Institute of Labor Economics (IZA).
    11. Demirci, Murat & Kırdar, Murat Güray, 2023. "The labor market integration of Syrian refugees in Turkey," World Development, Elsevier, vol. 162(C).
    12. Schmidt, Felix & Berger, Eva & Schunk, Daniel & Müller, Henning & König, Günther, 2017. "Self-Regulation Training and Job Search Effort: A Natural Field Experiment within an Active Labor Market Program," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168177, Verein für Socialpolitik / German Economic Association.
    13. Arendt, Jacob Nielsen & Dustmann, Christian & Ku, Hyejin, 2023. "Permanent Residency and Refugee Immigrants' Skill Investment," IZA Discussion Papers 16313, Institute of Labor Economics (IZA).
    14. Berger, Eva M. & Hermes, Henning & Koenig, Guenther & Schmidt, Felix & Schunk, Daniel, 2022. "Self-regulation training and job search input: A natural field experiment within an active labor market program," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    15. Gathmann, Christina & Garbers, Julio, 2023. "Citizenship and integration," Labour Economics, Elsevier, vol. 82(C).
    16. Bratu, Cristina & Martén, Linna & Ottosson, Lillit, 2023. "Individualized Benefits and Access to Active Labor Market Programs Boost Refugee Women’s Economic Integration," Working Paper Series 3/2023, Stockholm University, Swedish Institute for Social Research.
    17. Ferwerda, Jeremy & Finseraas, Henning, 2022. "Do Integration Courses Promote Refugees’ Social and Political Integration? Evidence from Norway," OSF Preprints 87w6e, Center for Open Science.
    18. Fornaro, Paolo & Maliranta, Mika & Rouvinen, Petri, 2019. "Immigrant Innovators and Firm Performance," ETLA Working Papers 63, The Research Institute of the Finnish Economy.
    19. Benoit Dostie & Mohsen Javdani, 2020. "Immigrants and Workplace Training: Evidence from Canadian Linked Employer–Employee Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 275-315, April.
    20. Eva M. Berger & Günther König & Henning Mueller & Felix Schmidt & Daniel Schunk, 2016. "Self-Regulation Training, Labor Market Reintegration of Unemployed Individuals, and Locus of Control - Evidence from a Natural Field Experiment," CESifo Working Paper Series 6246, CESifo.
    21. Arendt, Jacob Nielsen & Bolvig, Iben, 2023. "Trade-offs between work-first and language-first strategies for refugees," Economics of Education Review, Elsevier, vol. 92(C).

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