Integration of Refugees on the Danish Labor Market

The unprecedented inflow of refugees in the Nordic countries since 2014 has accentuated debates about the effectiveness of the Nordic models and their labor market integration programs. The ‘refugee crisis’ opened a window of opportunity in which some Nordic countries reformed their policy framework to promote faster and more effective labor market integration of refugees. Denmark is celebrated for its well-functioning flexicurity labor market, but has not been particularly successful in integrating nonwestern migrants and refugees in the labor market. We examine barriers on the supply-side, the demand-side, and in the matching process of the labor market to better understand the labor market performance of refugees. Subsequently, we analyze the new Danish labor market integration programs and discuss preliminary implementation results. Although it is too early to make any final judgments of the outcomes, there are indications of positive changes in implementation and results, while important integration issues remain unresolved

Employers and the Implementation of Active Labor Market Policies

Active labor market policies (ALMPs) are an important instrument for governments in dealing with the new challenges of globalization, flexibilization, and individualization of labor markets. Politics and research has focused on the supply-side of the labor market, that is, regulating the rights and obligations of the target groups of ALMPs (mainly unemployed and inactive persons). The role and behavior of employers is under-researched and under-theorized in the vast literature on ALMPs and industrial relations. In this article, we analyze ALMPs from the employers’ perspective by examining the determinants of firms’ participation in providing wage subsidy jobs for the unemployed. First, we examine the historical background to the introduction and development of wage subsidy schemes as an important ALMP instrument in Denmark. Second, we derive theoretical arguments and hypotheses about employers’ participation in ALMPs from selected theories. Third, we use data from a survey of Danish firms conducted in 2013 to characterize the firms that are engaged in implementing wage subsidy jobs and hypotheses are tested using a binary logistical regression to establish why firms voluntarily engage in reintegrating unemployed back into the labor market. We find that the firms which are most likely to participate in the wage subsidy scheme are characterized by many unskilled workers, a higher coverage of collective agreements, a deteriorating economic situation, a Danish ownership structure, and are especially found in the public sector. This shows that the preference formation of firms is more complex than scholars often assume