Denmark has been accepting refugees from a variety of countries over the last four decades. It has also frequently changed policies and regulations concerning integration programmes, transfer payments, and conditions for permanent residency. Such policy variation, in conjunction with excellent administrative data, facilitates evaluation of the effect of different immigration and integration policies on the outcomes of refugees in the country.

This publication describes the Danish experience with refugee immigration over the last four decades, reviews different post-arrival refugee policies, and summarises studies that evaluate the effect of these policies on the labour market performance of refugees. Lastly, it discusses and contrasts these findings in the context of international studies on similar policies and draws conclusions for policy.

Key findings presented in this document include:

• Denmark spreads out the accommodation of refugees across the country, via a quota distribution system in local municipalities. This has had a clear impact on refugees' integration into the labour market: being placed in an area with better options for employment results in higher attachment to the labour market 4 years later. Being placed in an area with many others from the same home country also improves refugees' employment, and the same goes for areas with a high level of social housing or more education options.
• As part of the integration programme for refugees, Danish language training is mandatory and free of cost. Language courses clearly improve refugees' employment and income over a longer time span. Intensive job training shortly after arrival facilitates employment in the short term, but is also found to decrease participation in language courses, thereby reducing the chances for employment and professional progress in the long term.
• Social benefits for newcomers have been reduced twice, with the aim of pushing refugees to find a job faster. This has had the desired effect, but only to some extent and only for the first 5-6 years after arrival, and is also outweighed by a number of negative effects. These include causing more women to leave the labour market, increasing crime rates, and poorer health and poorer performance in school among refugee children.
• Criteria for permanent residency in Denmark have been increased and restricted several times, and are now very hard to fulfil. This has had a negative impact on integration, as such demanding requirements serve as a demotivating factor, especially for those who are struggling to access and navigate the labour market.