Comparing the Effects of Policies for the Labor Market Integration of Refugees

This paper reviews, reanalyzes, and extends to the long run the estimated effects of integration polices on the employment probability and earnings of refugees in Denmark. We first describe the dynamics of labor market outcomes of refugees in Denmark. We then find that increased language training and initial placement in strong labor markets improved refugees’ long-run labor market outcomes, while cutting initial welfare payments and placing refugees near other refugees did not improve them. Policies focused on matching refugees with occupations experiencing shortages have positive short-run effects, but we cannot yet assess their long-run effects.