Abstract: The paper gives an introduction to the persistent problems regarding labour market integration of Non-Western immigrants and refugees in Denmark. We describe changes in the flow of immigrants to Denmark and the derived changes in the composition of the stock of immigrants and descendants on national origin. Next, the paper describes Danish immigration policy from the guest worker stop in the 1970s and until the recent situation. The shift in the composition of immigrants has contributed to a problematic situation regarding labour market integration, characterized by low participation and high unemployment among non-OECD immigrants. We emphasize problems on the demand side of the labour market, i.e. a high minimum wage and discrimination to some extent, and on the supply side due to weak or counterproductive financial incentives. * CIM, CLS, IZA and Department of Economics, University of Aarhus, Universitetsparken, 8000 Aarhus C, Denmark, email: pjp@cls.dk ** CIM, CLS, IZA and Department of Economics, Aarhus School of Business, Fuglesangs Alle 20, Aarhus V, Denmark, email: nina@asb.dk