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Refugee Migration and the Labor Market: Lessons from 40 Years of Post-arrival Policies in Denmark

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  • Arendt, Jacob
  • Dustmann, Christian
  • Ku, Hyejin

Abstract

Denmark has accepted refugees from a large variety of countries and for more than four decades. Denmark has also frequently changed policies and regulations concerning integration programs, transfer payments, and conditions for permanent residency. Such policy variation in conjunction with excellent administrative data provides an ideal laboratory to evaluate the effects of different immigration and integration policies on the outcomes of refugee immigrants. In this article, we first describe the Danish experience with refugee immigration over the past four decades. We then review different post-arrival refugee policies and summarize studies that evaluate their effects on the labor market performance of refugees. Lastly, we discuss and contrast these findings in the context of international studies of similar policies and draw conclusions for policy.

Suggested Citation

  • Arendt, Jacob & Dustmann, Christian & Ku, Hyejin, 2022. "Refugee Migration and the Labor Market: Lessons from 40 Years of Post-arrival Policies in Denmark," CEPR Discussion Papers 17184, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:17184
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    2. Wobbe, Clara & Blesse, Sebastian & Diegmann, André & Hessami, Zohal, 2025. "The (ir)relevance of insitutional proliferation: Evidence from foreigners' advisory council," VfS Annual Conference 2025 (Cologne): Revival of Industrial Policy 325385, Verein für Socialpolitik / German Economic Association.
    3. Farrokhi, Farid & Jinkins, David, 2024. "Root growing and path dependence in location choice: Evidence from Danish refugee placement," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    4. Dustmann Christian, 2024. "Migration ist kein Nullsummenspiel –ein Interview," Wirtschaftsdienst, Sciendo, vol. 104(8), pages 533-538.
    5. Ahrens, Achim & Beerli, Andreas & Hangartner, Dominik & Kurer, Selina & Siegenthaler, Michael, 2023. "The Labor Market Effects of Restricting Refugees' Employment Opportunities," IZA Discussion Papers 15901, Institute of Labor Economics (IZA).
    6. Foged, Mette & Hasager, Linea & Peri, Giovanni & Arendt, Jacob Nielsen & Bolvig, Iben, 2023. "Intergenerational spillover effects of language training for refugees," Journal of Public Economics, Elsevier, vol. 220(C).
    7. Torben M. Andersen, 2025. "Migration and the Nordic Welfare Model," CESifo Working Paper Series 11955, CESifo.
    8. Campo, Francesco & Giunti, Sara & Mendola, Mariapia & Tura, Giulia, 2025. "Political backlash to refugee settlement: Cultural and economic drivers," Journal of Public Economics, Elsevier, vol. 250(C).
    9. Dahlberg, Matz & Egebark, Johan & Vikman, Ulrika & Özcan, Gülay, 2024. "Labor market integration of refugees: RCT evidence from an early intervention program in Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 614-630.
    10. Hasager, Linea, 2024. "Does granting refugee status to family-reunified women improve their integration?," Journal of Public Economics, Elsevier, vol. 234(C).
    11. Johannes Kunz & Anna Zhu, 2023. "Welfare Reform and Migrant’s Long-term Labor Market Integration," Papers 2023-05, Centre for Health Economics, Monash University.
    12. Justin Hadad & Alexander Teytelboym, 2022. "Improving refugee resettlement: insights from market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 434-448.
    13. Müller, Tobias & Pannatier, Pia & Viarengo, Martina, 2023. "Labor market integration, local conditions and inequalities: Evidence from refugees in Switzerland," World Development, Elsevier, vol. 170(C).
    14. Heidland Tobias, 2025. "Zehn Jahre „Wir schaffen das“: Lehren aus und über Migrationsforschung," Wirtschaftsdienst, Sciendo, vol. 105(9), pages 628-631.

    More about this item

    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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