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Lessons from Denmark about Inequality and Social Mobility

Author

Listed:
  • Heckman, James J.

    (University of Chicago)

  • Landersø, Rasmus

    (Rockwool Foundation Research Unit)

Abstract

Many American policy analysts point to Denmark as a model welfare state with low levels of income inequality and high levels of income mobility across generations. It has in place many social policies now advocated for adoption in the U.S. Despite generous Danish social policies, family influence on important child outcomes in Denmark is about as strong as it is in the United States. More advantaged families are better able to access, utilize, and influence universally available programs. Purposive sorting by levels of family advantage create neighborhood effects. Powerful forces not easily mitigated by Danish-style welfare state programs operate in both countries.

Suggested Citation

  • Heckman, James J. & Landersø, Rasmus, 2021. "Lessons from Denmark about Inequality and Social Mobility," IZA Discussion Papers 14185, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14185
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    2. Henning Hermes & Marina Krauß & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2022. "Early Child Care, Maternal Labor Supply, and Gender Equality: A Randomized Controlled Trial," CESifo Working Paper Series 10178, CESifo.
    3. Shiqi Jiang & Lingli Qi & Xinyue Lin, 2022. "The Impacts of COVID-19 Shock on Intergenerational Income Mobility: Evidence from China," IJERPH, MDPI, vol. 19(18), pages 1-20, September.
    4. Mello, Ursula & Nybom, Martin & Stuhler, Jan, 2022. "A lifecycle estimator of intergenerational income mobility," Working Paper Series 2022:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Marie Connolly & Catherine Haeck, 2024. "Intergenerational income mobility trends in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(1), pages 5-26, February.
    6. Vincenzo Carrieri & Apostolos Davillas & Andrew M. Jones, 2023. "Equality of opportunity and the expansion of higher education in the UK," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 861-885, December.
    7. Hermes, Henning & Krauß, Marina & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2022. "Early child care and labor supply of lower-SES mothers: A randomized controlled trial," DICE Discussion Papers 394, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    8. Vidiella-Martin, Joaquim & Hernández-Pizarro, Helena M. & García-Gómez, Pilar & López-Casasnovas, Guillem, 2024. "Unravelling hidden inequities in a universal public long-term care system," The Journal of the Economics of Ageing, Elsevier, vol. 29(C).
    9. Aliprantis, Dionissi & Martin, Hal & Tauber, Kristen, 2024. "What determines the success of housing mobility programs?," Journal of Housing Economics, Elsevier, vol. 65(C).
    10. Dahlstrand Rudin, Amanda, 2022. "Defying distance? The provision of services in the digital age," LSE Research Online Documents on Economics 118042, London School of Economics and Political Science, LSE Library.
    11. Hermes, Henning & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2021. "Behavioral Barriers and the Socioeconomic Gap in Child Care Enrollment," IZA Discussion Papers 14698, Institute of Labor Economics (IZA).
    12. Henning Hermesifo & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2025. "Application Barriers and the Socioeconomic Gap in Child Care Enrollment," Journal of the European Economic Association, European Economic Association, vol. 23(3), pages 1133-1172.
    13. Hermes, Henning & Lergetporer, Philipp & Mierisch, Fabian & Schwerdt, Guido & Wiederhold, Simon, 2024. "Information about inequality in early child care reduces polarization in policy preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 228(C).
    14. Amanda Dahlstrand, 2022. "Defying distance? The provision of services in the digital age," CEP Discussion Papers dp1889, Centre for Economic Performance, LSE.

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    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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