Abstract
<jats:title>Abstract</jats:title> <jats:p>We investigate how new migrants allocate their time between formal investment in host-country language and work. Theoretical predictions on the timing of such investment follow from the dynamic human capital model. The empirical analysis covers refugee immigrants to Denmark who are offered free host-country language courses during the first three years after arrival. Participation gives eligibility to social assistance. Our descriptive analysis of individual outcomes during the first years since arrival shows high course take-up and the fastest language course progression within the first two years of arrival. By contrast, employment rates and average real annual labor earnings are initially low but increasing by year since arrival, especially between year one and two. Younger and highly skilled refugees demonstrate higher participation in language training and faster progression in language acquisition. At the same time, they achieve better labor market outcomes, as reflected in higher employment probabilities and labor earnings. These findings are in line with the dynamic human capital model. Additionally, for women, having children and the age composition of those children at arrival significantly impact enrolment in language programs, language acquisition progression, and employment outcomes.</jats:p>