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

32 Pages Posted: 18 Apr 2011

See all articles by Eskil Heinesen

Eskil Heinesen

Rockwool Foundation Research Unit

Leif Husted

Institute of Local Government Studies

Michael Rosholm

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics; Amternes og Kommunernes Forskningsinstitut (AKF)

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.

Keywords: programme evaluation, duration analysis, timing-of-events model

JEL Classification: J64, J24, J68, J61, C41

Suggested Citation

Heinesen, Eskil and Husted, Leif and Rosholm, Michael, The Effects of Active Labour Market Policies for Immigrants Receiving Social Assistance in Denmark. IZA Discussion Paper No. 5632, Available at SSRN: https://ssrn.com/abstract=1812477 or http://dx.doi.org/10.2139/ssrn.1812477

Eskil Heinesen (Contact Author)

Rockwool Foundation Research Unit ( email )

Sølvgade 10, 2.t.v.
Copenhagen K, DK-1307
Denmark

Leif Husted

Institute of Local Government Studies ( email )

Nyropsgade 37
DK-1602 Copenhagen V
Denmark

Michael Rosholm

Aarhus University - Department of Economics and Business Economics ( email )

Fuglesangs Allé 4
Aarhus V
Denmark
+45 89 42 15 59 (Phone)
+45 86 13 63 34 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Amternes og Kommunernes Forskningsinstitut (AKF)

Nyropsgade 37
Copenhagen, DK-1602
Denmark

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