A new international study published in the journal Nature reveals that immigrants in Denmark earn on average 9.2% less than people of Danish origin. The research, which analysed employment data from 13.5 million workers across nine countries, including Denmark, attributes this wage gap primarily to restricted access to high-paying industries and firms.
Despite Denmark performing better than the overall average of a 17.9% wage gap across the countries studied (which included Canada, France, Germany, the Netherlands, Norway, Spain, Sweden and the United States), the Danish labour market shows persistent structural barriers that limit immigrants’ economic integration.
Barriers extend beyond job type and employer
The study found that even when immigrants and Danish-born employees work in the same role for the same employer, immigrants still earn 2.3% less on average. According to Lasse Folke Henriksen, co-author of the study and associate professor at Copenhagen Business School, this underscores how inequalities persist even in comparable professional settings.
Henriksen argues that structural inequality is a key factor and calls for policy interventions that focus on skills training, language education, and action against discrimination in recruitment and promotion processes.
“We have a welfare society based on the ideal of equal opportunities. But our study clearly shows that structural barriers prevent immigrants – and their children – from accessing large parts of the labour market,” he stated.
Integration challenges in a Nordic welfare context
While Denmark is often recognised for its inclusive welfare model, the findings challenge assumptions about equal access to labour market opportunities. The study suggests that policies centred solely on employment rates or job availability may overlook deeper institutional and social exclusions.
Among the nine countries surveyed, Spain showed the highest wage disparity, with immigrants earning 29.3% less than native-born workers. By contrast, the Danish case illustrates how even a relatively low average gap can mask significant systemic issues, particularly regarding entry into lucrative sectors.
Political implications and future policy directions
The findings raise questions about the effectiveness of current integration policies in Denmark and across Europe. As migration continues to shape labour markets, ensuring equal pay and access to employment opportunities remains a key challenge.
The study’s authors recommend that governments adopt a more holistic approach to integration, addressing not only economic participation but also fair representation across sectors and the removal of discriminatory practices.
