2<Superscript>nd</Superscript> generation immigrants from less developed countries have less education and a lower employment frequency compared to the native Danish youth. We analyse the school-to-work transition of these groups using panel data for the years 1985–1997. The educational gap between 2<Superscript>nd</Superscript> generation...</superscript></superscript>

Randomized experiments provide policy relevant treatment effects if there areno spillovers between participants and nonparticipants. We show that thisassumption is violated for a Danish activation program for unemployed workers.Using a difference-in-difference model we show that the...