Denmark

   

Social Policies

#2
Key Findings
With a flexible, highly developed welfare system, Denmark falls into the top group internationally (rank 2) with respect to social policies. Its score on this measure is unchanged relative to 2014.

The country has a universal tax-funded healthcare system with services provided free of charge. The pandemic was a severe shock for the sector, producing a large backlog of patients awaiting treatments, and intensifying wage tensions.

Recent reforms have helped improve education outcomes after a period of mediocre student scores on international tests. Most social transfers have been reformed to strengthen work incentives. Poverty and inequality rates are low but have risen in recent years.

A robust childcare system allows both parents to work, with generous maternal and paternal leave provided. Recent pension-system reforms have improved sustainability. Immigration-related tensions have led to a tightening of rules, but labor-market and educational integration is proving increasingly successful.

Education

#11

To what extent does education policy deliver high-quality, equitable and efficient education and training?

10
 9

Education policy fully achieves the criteria.
 8
 7
 6


Education policy largely achieves the criteria.
 5
 4
 3


Education policy partially achieves the criteria.
 2
 1

Education policy does not achieve the criteria at all.
Education Policy
7
Education spending in Denmark is among the highest in the OECD, but educational outcomes are vividly discussed. Traditionally, Danish pupils have not scored well on the Program for International Student Assessment (PISA) problem-solving tests. However, Denmark made some progress in the 2015 PISA results, scoring above the OECD average in science, mathematics and reading. This was an improvement over the past where Denmark’s overall score was around the OECD average. Though there remains scope for improvement.

These improvements are partly attributable to recent reforms, including reforms to the primary and lower-secondary school systems. A major reform in 2013 granted more discretionary power to the school principal to allocate teacher resources and keep pupils in school for more hours. Longer school days, more assisted learning, lessons in Danish and math, and the teaching of foreign languages (English made compulsory from level 1, German and French from level 5) were also part of the policy.

The government set the target that 95% of young Danes should complete a general or vocational upper secondary education program. According to the most recent forecasts, this goal is close to being reached (the prediction is 93% for the current cohort). However, it should be noted that the goal is formulated in terms of education level achieved 25 years after having left primary school, in which sense the target is not very ambitious.

One problem is the fact that immigrant students score markedly lower than Danish students, a problem particularly pronounced among boys. However, second-generation – particularly female – students perform relatively better than first-generation students. Efforts are made through an “allocations mechanism” designed to ensure a more socioeconomically diverse student body in upper secondary education contexts.

Vocational and university education has also been on the political agenda, but challenges remain both in relation to the intake of students and lifelong learning issues. Universities have been under pressure to shorten the length of study and channel students into educational programs oriented toward business. Recent efforts have been aimed at ensuring a more geographically balanced access to educational institutions, but the extent to which this measure will compromise quality is subject to debate.

Since 2016, the education sector has been affected by the so-called reprioritizing contribution (omprioritetsbidrag), which has reduced the education budget by 2%. The new Social Democratic government has announced that it would end this annual saving target and transfer the money back to the education system, although the precise mechanism has not yet been determined.

Citations:
OECD. Education Policy Outlook Denmark, 2020 (https://www.oecd.org/education/policy-outlook/country-profile-Denmark-2020.pdf)

Ministry of Higher Education and Science https://ufm.dk/aktuelt/pressemeddelelser/2019/regeringen-stopper-omprioriteringsbidraget-pa-uddannelse.

Regeringen stopper omprioriteringsbidraget op uddaannelse (https://ufm.dk/aktuelt/pressemeddelelser/2019/regeringen-stopper-omprioriteringsbidraget-pa-uddannelse)


Minstry of Finance, “Velfærd først – tryghed, tillid og en grøn fremtid: Finansforslaget 2020, Oktober 2019,” https://www.fm.dk/publikationer/2019/finanslovspjece-2020 (accessed 15 October 2019)

OECD, “PISA 2012 Results in Focus,” https://www.oecd.org/pisa/pisa-2015-results-in-focus.pdf (Re-accessed 10 October 2018).

Udvalg for Kvalitet og Relevans i de Videregående Uddannelser, 2014, Høje mål – fremragende undervisning i de videregående uddannelser, København.

“Aftale til 2,5 milliarder til voksen- og efteruddannelse,” https://www.dr.dk/nyheder/politik/aftale-til-25-milliarder-til-voksen-og-efteruddannelse-paa-plads (Accessed 7 November 2017).

Social Inclusion

#3

To what extent does social policy prevent exclusion and decoupling from society?

10
 9

Policies very effectively enable societal inclusion and ensure equal opportunities.
 8
 7
 6


For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
 5
 4
 3


For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
 2
 1

Policies exacerbate unequal opportunities and exclusion from society.
Social Inclusion Policy
8
Inequality and poverty are low by international comparison, but have been increasing in recent years. While reforms of various welfare benefits have increased work incentives, they have also reduced incomes for some groups. Employment rates are high for men and women, but a distinguishing feature of the welfare model is that most people who are not in employment are entitled to some form of social transfer. Somewhat simplified, the debate is split between those arguing that the welfare state significantly undermines work incentives and those arguing that most unemployed people are unable to work due to various issues (e.g., social problems or a lack of qualifications) that make it difficult/impossible for them to find jobs.

Most social transfers have recently been reformed with a greater focus on employment. The aim of these reforms is to strengthen the incentive to work, but it may result in poverty for those failing or unable to respond to these incentives. The reform of the disability pension scheme implies that the disability pension cannot be granted to individuals below the age of 40 (except for cases of severe or permanent loss of work capability). Instead, the focus has shifted to using and developing an individual’s remaining work capabilities. Likewise, the social assistance scheme has been reformed with a particular focus on improving the educational attainment of young workers (people below the age of 30). For other age groups, the system now offers more flexibility and individualized solutions. Eligibility for social assistance depends on both a residence requirement (with immigrants needing to have been resident in Denmark for nine out of the last 10 years) and a work requirement (225 hours paid work within the last year). Moreover, there is an upper cap on total support (social assistance, housing supplement, child supplement). Immigrants not satisfying the residence requirement receive the lower so-called introduction benefit.

Finally, assessed in terms of life satisfaction, Denmark scores very well in various international comparisons, sometimes ranking as the happiest country in the world.

The present government aims to strengthen measures aimed at improving social inclusion and decreasing inequality and child poverty in particular. A temporary benefit supplement has been introduced for families with children that are affected by the upper cap on total support or receive the “integration” benefit. Moreover, the government has decided to increase municipality and regional funds for various welfare and educational programs.

Citations:
“Stort fald i antal modtagere af kontanthjælpsydelser,” https://www.dst.dk/da/Statistik/nyt/NytHtml?cid=25774 (Accessed 7 November 2018).

“10 Most Happy Countries Around the World,” https://www.wonderslist.com/10-most-happy-countries-in-the-world/ (accessed 7 November 2018).

“Politisk forståelse mellem Socialdemokratiet, Radikale Enstre, SF og Enhedslisten: Retfærdig retning for Danmark,”https://ufm.dk/ministeriet/regeringsgrundlag-vision-og-strategier/regeringen-mette-frederiksens-forstaelsespapir (accessed 15 October 2019).

Health

#1

To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?

10
 9

Health care policy achieves the criteria fully.
 8
 7
 6


Health care policy achieves the criteria largely.
 5
 4
 3


Health care policy achieves the criteria partly.
 2
 1

Health care policy does not achieve the criteria at all.
Health Policy
8
All Danish citizens are entitled to healthcare, regardless of economic circumstance. Services are offered free of charge, and elected regional councils have governed the sector since 2007. Though there is a formal health tax, the government determines this as part of its overall tax policy, and the regions must follow a budget that is determined in annual budget negotiations with the Ministry of Finance.

In 2019, life expectancy in Denmark was at 81 years, which is slightly above the OECD average, but below that of comparable countries. The life expectancy of women is somewhat higher than that of men. Life expectancy is on an upward trend. There has been a marked decline in smoking in Denmark in recent years, but obesity rates have increased. The social gradient in health remains strong, and there has been a growing focus on the issue of inequality in longevity.

Recently, there has been much public debate about the quality of hospital services. Increasing prices for medicine are putting pressure on efforts to finance healthcare. Cancer treatment has become a priority, as it is an area in which Denmark lags behind similar countries.

The establishment of large centralized (rather than regionally administered) hospitals has been contested and various problems in relation to, for example, electronic patient records remain unresolved. The debate continues concerning bringing some basic healthcare activities closer to the population via local healthcare centers, and the government has taken steps in this direction.

The pandemic has severely affected the healthcare sector, and there is a large backlog of patients waiting for treatment. The country faces challenges related to staffing shortages, the need to reduce accumulated overtime hours, and pay issues for nurses in particular. Nurses in the country rejected a decision resulting from collective bargaining in 2020 that led to the government intervening in order to bring an end to the conflict. A so-called wage structure committee has been appointed to analyze pay structures within the public health sector.

Citations:
OECD, Health at a glance 2020,” (accessed 27 November 2021).

Ministry of Finance, Finanslovsforlaget, August 2021. https://fm.dk/media/25143/hverdagen-tilbage-nu-ser-vi-fremad_web-a.pdf

Families

#9

To what extent do family support policies enable women to combine parenting with participation in the labor market?

10
 9

Family support policies effectively enable women to combine parenting with employment.
 8
 7
 6


Family support policies provide some support for women who want to combine parenting and employment.
 5
 4
 3


Family support policies provide only few opportunities for women who want to combine parenting and employment.
 2
 1

Family support policies force most women to opt for either parenting or employment.
Family Policy
9
By international comparison, Denmark performs well in terms of its family policy. Day care centers, preschools and kindergartens provide both parents the flexibility needed to work. In fact, female employment in Denmark is among the highest among OECD countries. Comparative research also shows that men do more household work than men in many other countries. Danes regard day care and preschool facilities as an indispensable public service. The system of parental leave, in connection with childbirth, is relatively generous and men also have parental leave rights.

Municipalities are in charge of day care facilities which may be either public institutions or private. These facilities contribute to a better work-life balance. Social parties and business play a role too. The government is proposing an increase in the number of employees per child resulting in a proposal that increases spending by DKK 1.4 billion until 2024.

The great majority of children attend day care facilities in Denmark. In 2017, about 70% of children aged two and under were in day care, the highest rate in the OECD. About 95% of children aged three to five attended some kind of preschool institution. There is a user payment (means tested) for day care, but
it does not cover the full cost, and the system is thus tax-subsidized.

Citations:
Ministry of Finance: Finanslovsforslaget, August 2021. (https://fm.dk/media/25143/hverdagen-tilbage-nu-ser-vi-fremad_web-a.pdf)

Pensions

#2

To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?

10
 9

Pension policy achieves the objectives fully.
 8
 7
 6


Pension policy achieves the objectives largely.
 5
 4
 3


Pension policy achieves the objectives partly.
 2
 1

Pension policy does not achieve the objectives at all.
Pension Policy
9
The Danish pension system is well-structured in accordance with the World Bank’s three-pillar conceptual framework. The first pillar is a tax-financed universal base pension with means-tested supplements. This pillar includes Denmark’s ATP pension scheme, which is a mandatory-funded defined-benefit scheme. The second pillar comprises occupational pensions agreed as part of collective agreements (and firm specific pension schemes), and they are contribution-based schemes. Contribution rates are in the range 12-18% for most employees. The third pillar involves tax-subsidized pension arrangements (tied until retirement) offered by insurance companies, pension funds and banks as well as other forms of savings (for most households in the form of housing wealth).

The combination of the different pillars of the pension scheme ensures protection against low income for the elderly (distributional objective) as well as a pension which is reasonable in relation to the income earned when the pensioner was active in the labor market (high replacement rates). The Danish pension scheme has for several years ranked in the top of the Melbourne Mercer Global Pension Index. The main challenges involve the complexity of the system, the possible disincentive effects on savings and retirement arising from the means testing of public pensions, and the problem of citizens outside the mandatory labor market pensions (the “residual” pension group).

Statutory ages in the pension system (in public pensions for early retirement and age limits for payment of funds from pension schemes) are established by legislation. Recent reforms – the 2006 welfare reform and the 2011 retirement reform – increased these ages considerably to cope with the aging population.

First, the retirement age (early retirement and pensions) has been gradually increased and the early retirement period reduced from five to three years. Second, the statutory pension/retirement age is linked (indexed) to developments in life expectancy at the age of 60 such that the expected pension period will become 14.5 years (17.5 including early retirement) in the long run (currently the expected pension period is between 18.5 and 23.5 years). The statutory retirement age is increased every fifth year (with a 15 years lead time). The latest increase in 2020 (applying from 2035) implies a statutory pension age of 69.
A particular challenge involves how to allow people to opt out of the labor market if their health or ability to work makes it impossible to postpone retirement in concert with the general upward trend in the pension age. There are three options: the first involves taking early retirement, which is a contribution-based system allowing the eligible to retire in a window of three years prior to the statutory pension age, the second involves receiving a senior pension, which depends on the assessed work capability, and the third involves receiving an early pension, which was recently introduced and allows those with a long career behind them the option of retiring one to three years earlier.

Citations:
Ministry of Employment. Ny ret til tidlig pension (https://bm.dk/arbejdsomraader/aktuelle-fokusomraader/ny-ret-til-tidlig-pension/)

Pensionskommissionen, 2015, The Danish Pension System – Internationally Praised but not without Problems (Det danske pensionssystem – international anerkendt, men ikke problemfrit), Copenhagen.

Integration

#12

How effectively do policies support the integration of migrants into society?

10
 9

Cultural, education and social policies effectively support the integration of migrants into society.
 8
 7
 6


Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
 5
 4
 3


Cultural, education and social policies do not focus on integrating migrants into society.
 2
 1

Cultural, education and social policies segregate migrant communities from the majority society.
Integration Policy
7
On 1 July 2020, there were about 814,000 immigrants and descendants of immigrants living in Denmark, or 13.8% of the population (9% immigrants, 5% descendants). Roughly two-thirds of immigrants are from non-western countries.

Immigration rules have been tightened since the 2002, including the family reunification rule introduced in 2004. Since peaking in 2015, immigration from countries outside the European Union has fallen, while immigration from within the European Union for work remains very important.

The employment rate of immigrants and their descendants aged 16 to 64 is low compared to other groups, though it has been increasing. As a consequence, there is a substantial employment gap, taking into account the age distribution. Immigrants from non-Western countries have an employment rate 22% lower than that of ethnic Danes in 2020 (for descendants the gap is 16%). The gap is higher for women (24%) than for men (19%). For immigrants from Western countries, the gap is about 11% (for descendants about 6%). Though the gaps in employment rates should be viewed in light of high employment rates in Denmark for both men and women, the high qualification requirements for securing a job, and the high minimum wage.

An increasing share of immigrants report being more integrated and having more Danish friends, with fewer saying they have experienced discrimination. In addition, many more immigrants than ever before now speak Danish. Half of all male refugees are in work within three years after arrival, and the children of refugees are integrating into Danish schools faster than in the past.

Concerning educational achievements, immigrants and their descendants – especially girls – are making progress. For the age group 25 to 34 years old, 80% of women with Danish ethnicity and 67% of women with a foreign background, and 73% of men with Danish ethnicity and 49% of men with a foreign background have completed secondary education.

There is broad political support for tight immigration policies and various measures have been introduced to reduce immigration (also for family unification) in recent years. The conditions of temporary residency permits are being reassessed and the scope for temporary residents to return is being discussed. These measures should be viewed together with changes to the social safety net and reduced transfers to immigrants.

Denmark has stopped receiving so-called quota refugees through the United Nations, even though some municipalities had declared that they were ready to receive more. The Social Democratic party has committed itself to a strict immigration policy, which allowed it to capture votes from the Danish People’s Party. However, the other parties in the “red” block, especially the Social Liberals, are in favor of a more liberal immigration
policy.

Though immigration policy was broadly expected to be the main topic in both the European Parliament election in May 2019 and the June 2019 general election, climate change turned out to be the focus. This perhaps reflects the fact that there is greater agreement on climate change issues.

Another controversial issue has been the question of attracting qualified workers from abroad, which is arguably more a labor market policy issue. The rules for this type of immigration are debated in the context of the currently low unemployment rate.

Finally, the government has proposed that asylum-seekers should be housed in facilities outside the EU throughout their application process. This proposal has been met with criticism from the African Union and the EU.

Citations:
African union. Press Statement on Denmark’s Alien Act provision to Externalize Asylum procedures to third countries (https://au.int/en/pressreleases/20210802/press-statement-denmarks-alien-act-provision-externalize-asylum-procedures)

“Hvor mange kommer, og Hvorfra?” http://refugees.dk/fakta/tal-og-statistik/hvor-mange-kommer-oghvorfra/
(Accessed 21 October 2017).

Statistics Denmark, Statistikbanken (http://uim.dk/tal-og-statistik/tal-og-statistik-om-integration)

Safe Living

#11

How effectively does internal security policy protect citizens against security risks?

10
 9

Internal security policy protects citizens against security risks very effectively.
 8
 7
 6


Internal security policy protects citizens against security risks more or less effectively.
 5
 4
 3


Internal security policy does not effectively protect citizens against security risks.
 2
 1

Internal security policy exacerbates the security risks.
Internal Security Policy
8
The security forces and police are responsible for internal security, which is under the remit of the Ministry of Justice. Cooperation between the police and defense intelligence services was increased after 9/11. International cooperation with Western allies has also increased.

Denmark is not a violent society. The homicide rate is low, and Danes normally trust the police. However, burglaries are not uncommon and crimes related to drug use, especially in the bigger cities, have increased. Recently, gang crime rates have increased, including shooting incidences. Terrorist events at home and abroad have increased tensions. Denmark has opted out of the justice and home affairs cooperation within the European Union (since 1993), a position that was reaffirmed by referendum in 2015. Subsequent negotiations led to an agreement with Europol, which allows Denmark to take part in police cooperation. It remains to be seen how satisfactory the agreement will be, although there is no broad support for reopening the issue.

Following the large influx of refugees and asylum-seekers in 2015, the government reintroduced border controls, a policy that will be continued by the new government, despite being contested by some groups. Denmark does not support a common EU agreement on the distribution of refugees. The question of continuing national border controls continues to be discussed.

In an opinion poll in November 2015, 27% answered very likely and 54% answered likely on the possibility that a terror attack will occur in the next few years. The same poll showed that an overwhelming majority thought that a fundamentalist Islamic group was most likely to carry out such an attack. Recently, there have been a number of attacks, including bombings, in the Copenhagen area, which have been linked to Swedish gangs. The current Social Democratic government has therefore introduced new temporary border checks at the bridge tunnel that connects Copenhagen and Malmø in Sweden, and ferry connections between the two countries.

Citations:
Eurobarometer, Spring 2015. http://ec.europa.eu/commfrontoffice/publicopinion/archives/eb/eb83/eb83_first_en.pdf (Accessed 21 October 2017).

“Iran attempted political assassination in Denmark:PET,” https://www.thelocal.dk/20181030/iran-attempted-assassination-in-denmark-pet (accessed 7 November 2018).

“Grænsekontrollen har nu kostet mindst 1,25 milliarder kroner,” https://www.dr.dk/nyheder/politik/graensekontrollen-har-nu-kostet-mindst-125-milliarder-kroner (assessed 16 October 2019)

Finance Ministry, Finanslovforslaget 2020. https://www.fm.dk/publikationer/2019/finanslovspjece-2020 (accessed 16 October 2019).

Global Inequalities

#5

To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?

10
 9

The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
 8
 7
 6


The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
 5
 4
 3


The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
 2
 1

The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Global Social Policy
9
Assisting developing countries has broad support. Denmark is one of only five countries in the world to contribute more than the UN target of 0.7% of gross national income (GNI) to development assistance. Some of the funds have been redirected to address the increasing inflow asylum-seekers.

Denmark is increasing its focus on those regions in the Middle East and Africa where many refugees originate. Denmark will not reduce its humanitarian aid. In May 2016, 40% of Danes felt that it was very important to help people in developing countries and 49% felt that it was fairly important. During the great influx of refugees in September 2015, 30% of the Danish population supported giving more development aid, 35% the same amount, 28% less. Overall, there is still relatively strong support for development aid in Denmark.

The government’s development strategy for 2021 prioritizes the following items: an increased focus on environmental issues and migration, which includes returning illegal migrants to their home countries; mobilizing private capital to increase development aid; increasing support for multilateral efforts targeting women and girls’ sexual and reproductive health and rights. About 70% of Denmark’s official development aid (ODA) is bilateral, the remaining 30% is multilateral.

Development policy is not a high priority in policy debates.

Citations:
Ministry of Development. Regeringens Udviklingspolitiske Prioriteter. (file:///Users/rkl/Downloads/Regeringens%20udviklingspolitiske%20prioriteter%202021.pdf)
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