We investigate antiferromagnetic spin ladders with nonmagnetic impurit
ies by variational and numerical [Lanczos and density matrix renormali
zation group (DMRG)] methods. The interaction between the two unpaired
spins opposite to the impurities is described by an effective exchang
e interaction J(eff), the magnitude of which depends on the impurity d
istance. The magnitude of J(eff) is different for unpaired spins at th
e edges of an open ladder and in the bulk. This difference is related
to the different distributions of the unpaired spin into the bulk of t
he ladder. The numerical results are interpreted using matrix product
states. Using the DMRG we calculate the spectrum of low-lying energy l
evels for up to six impurities and find that these spectra can be repr
oduced assuming pair interactions with an accuracy of better than 10%.
We discuss the filling of the ladder gap with impurity states and arg
ue that in the thermodynamic limit the spin ladder with a finite conce
ntration of impurities always shows a Curie susceptibility at low temp
eratures.