Skip to main content

Table 1 An overview of Danish policy reactions to the crisis

From: “Shelter from the storm?” - Danish flexicurity and the crisis

Degree of discreation

Automatic

Discretionary

Policy area

  

Macro-economic policy

Strong automatic stabilisers due to high tax-rates and income support to unemployed

Growth packages mainly focused on public investments and tax reductions

Labour market policy

Rule-based system of active measures targeted at all unemployed recipients of transfer income (UI and cash benefits)

A number of minor adjustments to the various active measures.

Initiatives to combat youth unemployment

A wide coverage of income support systems in the form of unemployment insurance and cash benefits for non-insured unemployed

Shortening the duration of benefits from 4 to 2 years and tightening the criteria for regaining the right to benefits

  

“Acute packages” for LTU exhausting their right to benefits from unemployment insurance