Labour market assimilation of Danish first-generation male immigrants is an
alysed based on two panel data sets covering the population of immigrants a
nd 10 per cent of the Danish population during 1984-1995. Wages and employm
ent probabilities are estimated jointly in a random effects model which cor
rects for unobserved cohort and individual effects and panel selectivity du
e to missing wage information. The results show that immigrants assimilate
partially to Danes, but the assimilation process differs between refugees a
nd non-refugees.