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The Effects of Active Labour Market Policies for Immigrants Receiving Social Assistance in Denmark

Author

Listed:
  • Heinesen, Eskil

    (Rockwool Foundation Research Unit)

  • Husted, Leif

    (KORA - Danish Institute for Local and Regional Government Research)

  • Rosholm, Michael

    (Aarhus University)

Abstract

We estimate the effect of active labour market programmes on the exit rate to regular employment for non-western immigrants in Denmark who receive social assistance. We use the timing-of-events duration model and rich administrative data. We find large positive post-programme effects, and, surprisingly, even most in-programme effects are positive. The effects are largest for subsidized employment programmes, but effects are also large and significant for direct employment programmes and other programmes. The effects are larger if programmes begin after six months of unemployment. Implications of our estimates are illustrated by calculating effects on the duration to regular employment over a five-year period.

Suggested Citation

  • Heinesen, Eskil & Husted, Leif & Rosholm, Michael, 2011. "The Effects of Active Labour Market Policies for Immigrants Receiving Social Assistance in Denmark," IZA Discussion Papers 5632, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5632
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    Cited by:

    1. Paul Auerbach & Peter Skott, 2021. "Visions of the future – a socialist departure from gloom?," PSL Quarterly Review, Economia civile, vol. 74(298), pages 155-177.
    2. Caroline Hall & Inés Hardoy & Kristine Simson, 2024. "Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-33, March.
    3. Jacob Nielsen Arendt & Christian Dustmann & Hyejin Ku, 2022. "Refugee migration and the labour market: lessons from 40 years of post-arrival policies in Denmark [‘The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation’]," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 531-556.
    4. Seonho Shin, 2022. "Evaluating the Effect of the Matching Grant Program for Refugees: An Observational Study Using Matching, Weighting, and the Mantel-Haenszel Test," Journal of Labor Research, Springer, vol. 43(1), pages 103-133, March.
    5. Anne Britt Djuve & Hanne Cecilie Kavli, 2019. "Refugee integration policy the Norwegian way – why good ideas fail and bad ideas prevail," Transfer: European Review of Labour and Research, , vol. 25(1), pages 25-42, February.
    6. 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).
    7. Frederik Thuesen & Vibeke Jakobsen & Nina T. Dalgaard & Bjørn C. A. Viinholt, 2020. "PROTOCOL: Interventions to improve the economic self‐sufficiency of unemployed immigrants from non‐Western countries," Campbell Systematic Reviews, John Wiley & Sons, vol. 16(4), December.
    8. Nisar Ahmad & Michael Svarer & Amjad Naveed, 2019. "The Effect of Active Labour Market Programmes and Benefit Sanctions on Reducing Unemployment Duration," Journal of Labor Research, Springer, vol. 40(2), pages 202-229, June.
    9. Rainer Eppel & Ulrike Famira-Mühlberger & Thomas Horvath & Ulrike Huemer & Helmut Mahringer, 2018. "Anstieg und Verfestigung der Arbeitslosigkeit seit der Wirtschaftskrise. Entwicklung, Ursachen und Handlungsansätze," WIFO Studies, WIFO, number 62227, April.
    10. Henna Busk & Signe Jauhiainen, 2022. "The Careers of Immigrants in Finland: Empirical Evidence for Genders and Year of Immigration," Journal of International Migration and Integration, Springer, vol. 23(4), pages 2009-2030, December.
    11. Dries Lens & Ive Marx & Sunčica Vujić, 2017. "Integrating (former) asylum seekers into the Belgian labour market. What can we learn from the recent past?," Working Papers 1710, Herman Deleeck Centre for Social Policy, University of Antwerp.
    12. Stephan Thomsen & Thomas Walter & Alisher Aldashev, 2013. "Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.
    13. Peter Huber & Doris A. Oberdabernig, 2016. "Decomposing Welfare Wedges: An Analysis of Welfare Dependence of Immigrants and Natives in Europe," Kyklos, Wiley Blackwell, vol. 69(1), pages 82-107, February.
    14. Jacob Nielsen Arendt, 2022. "Labor market effects of a work-first policy for refugees," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(1), pages 169-196, January.
    15. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
    16. Sebastian Butschek & Thomas Walter, 2014. "What active labour market programmes work for immigrants in Europe? A meta-analysis of the evaluation literature," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    17. Bonin, Holger & Rinne, Ulf, 2017. "Machbarkeitsstudie zur Durchführung einer Evaluation der arbeitsmarktpolitischen Integrationsmaßnahmen für Flüchtlinge," IZA Research Reports 76, Institute of Labor Economics (IZA).
    18. Mörk, Eva & Ottosson, Lillit & Vikman, Ulrika, 2021. "To work or not to work? Effects of temporary public employment on future employment and benefits," Working Paper Series 2021:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    19. 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.

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    More about this item

    Keywords

    timing-of-events model; duration analysis; programme evaluation;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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