*We analyse the effect of active labour-market programmes on the hazard rate into regular employment for newly arrived immigrants using the timing-of-events duration model. We take account of language course participation and progression in destination country language skills. We use rich administrative data from Denmark. We find substantial lock-in effects of participation in active labour-market programmes. Post programme effects on the hazard rate to regular employment are significantly positive for wage subsidy programmes, but not for other types of programmes. For language course participants, improvement in language proficiency has significant and substantial positive effects on the hazard rate to employment.
JEL Classification:J64, J24, J68, J61, C41
Over the past decade, the number of ethnic minorities in Denmark has increased rapidly, now accounting for over per cent of the total population. This paper presents results from a number of recent studies regarding the educational choices of minority children from less developed countries. An important social concern is that the educational attainment of these children is much lower than among native Danes. The studies show that that a main reason for the education gap is very high dropout rates from vocational schools among minority children and that inadequate Danish language proficiency of immigrants, parents and their children, is an important reason for the high dropout rates, as are inadequate educational preparedness from grade school and insufficient apprenticeship positions available for minority youth. Socio-economic background, however, has relatively little effect. Recent policy changes to reduce dropout rates from vocational schools are reviewed and additional policy interventions are proposed.
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