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Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs

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  • Matti Sarvimäki
  • Kari Hämäläinen

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.

Suggested Citation

  • Matti Sarvimäki & Kari Hämäläinen, 2016. "Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 479-508.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/683667
    DOI: 10.1086/683667
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