Influence of Immigration on the Unemployment Rate : -the Case of Denmark

The main purpose of this thesis is to reveal the effects of immigration on the aggregate unemployment rate in Denmark. Previous studies revealed somewhat different effect of immigration on earning and unemployment rate. Most of American studies showed neutral or positive effect of immigration on unemployment of the native population, but many European studies find negative effects of immigration. I have composed crosssectional data from 99 municipalities of Denmark during three years. I used a regression model in order to analyze and draw conclusions from effect of immigration on the unemployment rate in Denmark, paying particular attention to immigrants from nonWestern countries. My results indicate that changes in the foreigner population and in population with non-Western origins do not lead to the significant changes in the unemployment rate. Hereby, it could be stated that derived conclusions are comparable and consistent with underlying theory and previous study.