Distribution and labour market incentives in the welfare state – Danish experiences

In recent years, Denmark has been successful in ensuring and maintaining a low unemployment rate. However, almost one third of the working-age population remains dependent on public transfers, a fact which poses questions on both social inclusion and financial pressures on the welfare state. In this paper, we consider more closely the interaction between the social safety net and the need and scope for maintaining a high employment rate in a welfare state of the Scandinavian type. The focus is on the basic dilemma between ambitious distributional goals on the one hand and work incentives on the other. The paper discusses policy issues related to minimizing welfare dependence that improve the transition from welfare to work. We consider these issues in a life cycle perspective considering entry into the labour market, maintenance of labour market contact, and exit from the labour market. Finally, we consider some recent reform proposals and initiatives in Denmark.Incentives to work; Social safety net; Distribution

Fiscal Sustainability and Generational Burden Sharing in Denmark

Based on generational accounts and a simple welfare calculus, this paper studies two alternative scenarios of sustainable fiscal policy in Denmark. A strategy of tax smoothing is found to provide a fairly even intergenerational distribution of the financial burden associated with population ageing. While tax smoothing causes a relatively sharp increase in public debt along the transition path, a strategy of debt smoothing is shown to pass a larger part of the financial burden onto current generations but without changing the intergenerational distribution profile in any dramatic way. A comparison based on a social welfare function indicates a marginal superiority of tax smoothing.

Dansk økonomi 1979-2019: Økonomisk-politiske bidrag til 40 års fremgang

Danmark har gennem de sidste 40 år oplevet en markant økonomisk fremgang. Fra en situation med høj arbejdsløshed, stort underskud på de offentlige finanser, høj offentlig gæld, uholdbare offentlige finanser, stort betalingsbalanceunderskud og udlandsgæld i 1979 er dansk økonomi i 2019 i en situation, hvor alle de nævnte problemer er fjernet eller markant reduceret. Denne artikel peger på fem elementer, der har bidraget: Troværdighed om fastkurspolitikken, introduktionen af arbejdsmarkedspensioner, skattereformer, arbejdsmarkedsreformer og finanspolitisk planlægning herunder indeksering af pensionsalderen

Finanspolitikken i lyset af coronakrisen

Coronakrisen har ført til en af de mest markante finanspolitiske indsatser i nyere tid. Artiklen belyser faserne i de anvendte finanspolitiske redskaber. Samlet set vurderes tiltagene inkl. hjælpepakker at være en ”god forretning” for dansk økonomi i den forstand, at understøttelsen af indkomsterne for nulevende generationer overstiger belastningen af fremtidige generationer. Samtidig har det økonomiske tilbageslag og hjælpepakker mv. ikke i nævneværdigt omfang påvirket råderummet frem mod 2025. Vurderingerne skal ses i lyset af, at der er tale om midlertidige tiltag i en ekstraordinær situation med ledige ressourcer, en rente tæt på nul, og hvor den offentlige gæld i udgangspunktet er la