Immigrants in Denmark earn significantly less than native Danes and face barriers accessing high-paying jobs, but their children are narrowing the gap, according to a new international study.
Major Income Disparity Between Immigrants and Natives
A newly published study in the journal Nature reveals that immigrants in Denmark earn on average 9.2% less than native Danes, even when they have the same job and qualifications. This figure is below the average difference across nine countries in Europe and North America, where immigrants earn an average of 17.9% less than native-born employees.
The study examined data from 13.5 million employees and employers across Denmark, Norway, Sweden, Germany, the Netherlands, France, Spain, the United States, and Canada. Denmark alone contributed nearly 1.8 million individual data points.
Structural Factors Contribute to the Wage Gap
The research attributes the wage disparities to several persistent challenges faced by immigrants. One significant barrier is the underrepresentation of immigrants in high-paying industries and firms. Many immigrants work in sectors that offer lower average wages, which contributes to the overall income inequality.
In addition, language difficulties, limited professional networks, and a lack of recognition for foreign qualifications further complicate access to higher-paying employment. Even when immigrants secure positions similar to natives, they still earn, on average, 4.6% less in identical roles.
Variation Across Countries and Regions
In most of the surveyed countries, wage gaps were evident, but Sweden stood out with a surprising result: first-generation immigrants in identical jobs as native Swedes earned 1.2% more. This is the only nation where the wage difference favored immigrants.
The origin of the immigrant population also affects income outcomes. Immigrants from Sub-Saharan Africa show the most pronounced wage disparities compared to local citizens. In contrast, immigrants from Western countries, such as the United States, Canada, and other parts of Europe, experience much smaller pay gaps and better access to high-paying positions. This suggests that qualifications from these regions are more readily acknowledged in the host country’s labor market.
Children Of Immigrants Are Closing the Wage Gap
Despite the challenges faced by first-generation immigrants, their children are seeing improved outcomes. Second-generation immigrants in Denmark perform considerably better academically and professionally, indicating a level of successful integration in the education system and the labor market.
However, a residual wage gap still exists even among the locally born children of immigrants. Factors such as name-based or racial discrimination might still influence employment opportunities and salary levels, highlighting that structural bias has not been entirely eliminated.
Denmark’s Wage Gap Smaller But Still Problematic
Compared to the other countries in the study, Denmark has one of the lowest wage differentials, both for first-generation and second-generation immigrants. However, the presence of any gap underscores ongoing structural issues that require policy intervention.
Policy measures such as more tailored language training, certification of foreign qualifications, assistance in job searching, and anti-discrimination initiatives during recruitment and promotion processes are suggested to mitigate existing inequities.
Potential Policy and Societal Responses
Denmark has already introduced some integration and qualification programs for immigrants, yet this study suggests there is room for improvement. Ensuring that international qualifications are recognized more easily and promoting inclusive hiring practices could help bridge the wage divide.
While progress is evident, particularly in younger generations, the data signals the need for sustained and structured efforts to dismantle systemic obstacles that prevent full economic inclusion. The findings serve not only as a diagnostic of current challenges but also as a roadmap for crafting more equitable labor markets in Denmark and beyond.
