Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs

Matti Sarvimäki () and Kari Hämäläinen

Journal of Labor Economics, 2016, vol. 34, issue 2, 479 - 508

Abstract: We examine the impact of restructuring active labor market programs for unemployed immigrants in Finland. Exploiting a discontinuity in the phase-in rules of the reform, we find that it increased compliers' cumulative earnings by 47% over a 10-year follow-up period. We attribute these improvements to a more efficient use of existing resources. The reform did not affect total days in training, but it did modify the content toward training specifically designed for immigrants.

Date: 2016
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