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The Danish labor market, 2000–2018

Author

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  • Torben M. Andersen

    (Aarhus University, Denmark, and IZA, Germany)

Abstract

Denmark is often highlighted as a “flexicurity” country characterized by lax employment protection legislation, generous unemployment insurance, and active labor market policies. Despite a sharp and prolonged decline in employment in the wake of the Great Recession, high job turnover and wage adjustments worked to prevent increased long-term and structural unemployment. Most unemployment spells were short, muting the effects on long-term and youth unemployment. Recent reforms boosted labor supply and employment, targeting the young, elderly, and immigrants. Employment recovered to its structural level around 2015 and has since increased due to a favorable business cycle situation and structural reforms (particularly increases in retirement age).

Suggested Citation

  • Torben M. Andersen, 2019. "The Danish labor market, 2000–2018," IZA World of Labor, Institute of Labor Economics (IZA), pages 404-404, December.
    • Handle: RePEc:iza:izawol:journl:2019:n:404
    as

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    References listed on IDEAS

    as
    1. Hansen, Marianne Frank & Schultz-Nielsen, Marie Louise & Tranæs, Torben, 2015. "The Impact of Immigrants on Public Finances: A Forecast Analysis for Denmark," IZA Discussion Papers 8844, Institute of Labor Economics (IZA).
    2. Christian M. Dahl & Daniel le Maire & Jakob R. Munch, 2013. "Wage Dispersion and Decentralization of Wage Bargaining," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 501-533.
    3. Maibom, Jonas & Rosholm, Michael & Svarer, Michael, 2014. "Can Active Labour Market Policies Combat Youth Unemployment?," IZA Discussion Papers 7912, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    flexicurity; business cycles; structural policies; youth unemployment; immigration;
    All these keywords.

    JEL classification:

    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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