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

We used the timing-of-events duration model and rich administrative data. We found significant positive post-programme effects, and, surprisingly, most in-programme effects were also positive.

The effects were largest for subsidized employment programmes, but effects were also significant for direct employment programmes and other programmes. The effects were greater if programmes began 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.