March 14th, 2019 “Local Labour Demand and Immigrant employment”

Presenter: Marie Louise Schultz-Nielsen,  ROCKWOOL Foundation Research Unit

March 14th, 2019 at 11.00-12.00

Where: Kraks Fond, Frederiksholms Kanal 30, seminar room


Local Labour Demand and Immigrant employment

This paper investigates the effect of local labour demand on employment of immigrant workers. We take into account self-selection into locations by estimating the effects for refugees who were subject to the Danish Spatial Dispersal Policy from 1999-2010 using full population Danish administrative registers that contain information on admission class of immigrants. We identify refugee status without any measurement error. Our findings show that residence in a municipality with a one percentage point higher employment rate increases the employment rate of refugees by 0.6-0.7 percentage point (or 2.1%) within the first four years of their stay in Denmark. We also argue that the local employment rate is a better measure of local labour demand for refugees than the local unemployment rate.

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