Flexibility and Solidarity Pragmatic Approaches in Denmark’s Labour Market Policy* By Siegfried F. Franke, University of Stuttgart

A. The State of Affairs I. Key Data 1. Population and Economic Structure With an area of 43,094 km² and around 5.3 million inhabitants, Denmark is a relatively small country. This can also be seen in the average population density of 122 inhabitants per km² (in comparison, Germany has 230 inhabitants per km²), although it must be borne in mind that approximately 1.8 million of its inhabitants live in the region around the capital, Copenhagen. The country’s population growth has also been relatively moderate. From 1990 to 1997 it only increased by about 135,000, i.e. approximately 2.6 percent. In contrast the population in the whole of Germany grew by 3.3 percent in the same period (Statistisches Bundesamt [German Federal Statistical Office], 1998, 36, 39). Denmark has hardly any raw materials of note, and is often somewhat patronisingly referred to as an agriculturally based economy. Of course, this has never been the case. The contribution of its agricultural and forestry sector to total value added (4 percent in 1996) is indeed above the average share for the countries of the European Union (it is on a par with Finland, with only Greece [14.2 percent] and Ireland [7.2 percent] having higher figures; in comparison: Germany: 1.1 percent, France: 2.4 percent), yet this share is maintained by a constantly decreasing labour force. Whereas in 1985 7.4 percent of the labour force were employed in the agricultural sector, their share fell to 5.9 percent in 1990 and was only 4.7 percent in 1996 (Statistisches Bundesamt [German Federal Statistical Office], 1998, 152; Pedersen, 1998). *

This article was originally published in the year 2000 in a volume edited by Hartmut Berg entitled “Arbeitsmarkt und Beschäftigung: Deutschland im internationalen Vergleich” [“The Labour Market and Employment: Germany from an International Perspective”]. At the request of foreign colleagues it has been translated into English with the kind permission of the publishers Duncker & Humblot, Berlin. I would like to thank David Matley M.A. of the University of Stuttgart for his excellent translation. © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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The industrial sector (including energy production and building) contributed 27.8 percent of gross value added in 1996, whereas the entire service sector’s share was 68.2 percent. The value added of this sector thus places it in the top group of European Union countries – disregarding Luxembourg, with its above-average share of financial services. However, on closer examination it must be pointed out that – in line with Denmark’s welfare state tradition – the state’s share in the service sector is unusually high. Thirty-one percent of the workforce alone work in the public sector (Statistisches Bundesamt [German Federal Statistical Office], 1998, 152; Emmerich/Werner, 1998, 5). It is safe to assume that the public sector’s capacity has since been exhausted. In the periods from 1984 to 1989 and from 1989 to 1994, growth in the workforce was only 0.3 percent and 0.2 percent respectively, whereas in the three previous five-year periods (1969 to 1974, 1974 to 1979, and 1979 to 1984) the average growth rates had been 7.3 percent, 4.4 percent and 3.8 percent respectively. One factor behind these above-average growth rates for the European countries was – as in Sweden – the government’s declared intention not to allow jobs losses arising from structural changes in agriculture and in industry to affect the labour market. (Andersen, 1997, 131 ff.; Edin/Holmlund, 1997, 102; Meidner/Hedborg, 1984, 12, 18).

2. Economic Growth In view of its economic structure, marked by a lack of raw materials, it is understandable that Denmark was hit particularly hard by the two oil crises of 1973 and 1978. Consequently, Denmark had to cope with a trade deficit from the beginning of the 1970s into the 1980s, and for the period from 1974 to 1982 Danish statistics show an average increase in gross domestic product of only 1.7 percent. The recovery in growth, reflected in an average rate of increase of 3.2 percent for the period from 1983 to 1986, was only to be followed by a drastic decline in the period from 1987 to 1992; in this period annual growth was only 0.8 percent (statistics quoted after Andersen, 1997, 126). According to calculations by the European Commission, average growth in gross domestic product was only 1.4 percent between 1986 and 1990, in the following five-year period (1991 to 1995) it was slightly higher at 2 percent (quoted after Emmerich/Werner, 1998, 4). The causes for this considerable fall in growth rates was, on the one hand, an increase in the unemployment rate in the

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wake of decreasing growth, which will be highlighted later in this article, and, on the other hand, increasing national debt, which was coupled with inflationary trends. Despite the above-mentioned problems, Denmark was able to maintain its traditionally high national product, as the years 1995 and 1996 show: at US$ 30,000 and US$ 32,000 respectively, per capita gross national product in these two years was well above that of Germany, being US$ 27,500 and US$ 28,500 respectively (Statistisches Bundesamt [German Federal Statistical Office], 1997, 351; 1998, 355). However, to put this in perspective, it must be added that, following the internationally accepted convention for calculating national product, every state employee increases national product per definitionem, without the question being asked whether the population at large actually wants the additional state output they produce, and thus actually does increase the welfare of the country.

3. Inflation and National Debt As previously discussed, the share of public services is relatively high due to Denmark’s welfare state tradition. An additional factor has been the government’s objective of using the public sector to absorb part of the workforce made redundant from the private sector. Thus it is not surprising that national debt has risen considerably in recent years. In 1993 total national debt – as a percentage of gross domestic product – was around 80 percent, and between 1993 to 1996 annual net new indebtedness was around 4.8 percent. (Andersen, 1997, 126; OECD, 1999, 4 f.). Notwithstanding the fact that Denmark has decided not to join the European currency union for the time being, it should be noted that this would have meant that two important entrance criteria had not been met (the required levels were 60 percent total debt and 3 percent annual net new indebtedness). At times inflation reached considerable levels. From 1974 to 1982 the average annual inflation rate was 10.9 percent. It then fell to 5.6 percent per year (1983 to 1986), and then further to 3.7 percent per year (1987 to 1992). Considerable success in fighting inflation was achieved from 1993 onwards; from this point onwards the inflation rate fell to 1.8 percent a year (1993 to 1996) (Andersen, 1997, 126).

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4. Developments on the Labour Market Clearly, the labour market has not been unaffected by the indicators discussed so far. While in the 1960s there was almost full employment, the two oil crises left deep scars on the Danish labour market. As a result of the first oil crisis, the unemployment rate, which had been below 2 percent since 1970 (in 1973 it was even as low as 1.0 percent) and was thus at an relatively insignificant level, rocketed to around 5.6 percent in 1975, and reached 7.6 percent only three years later in 1978. In 1982 it reached the 10 percent level. In the following years governments did manage to reduce the rate to about 8 percent, but at the beginning of 1991 it once again exceeded the 10 percent mark, reaching its as yet highest level of 12.4 percent in 1993 (Andersen, 1997, 123, 126; Madsen, 1998a, 614). This corresponded to a figure of around 350,000 unemployed persons. Incidentally, it should be noted that unemployment in Denmark was at times considerably higher than in Germany (Emmerich/Werner, 1998, 1, 3). This development induced the government to take a series of measures to return unemployment to a tolerable level. The government’s endeavours have to be seen in the context of a traditionally high potential labour force, which was around 2.6 million in 1996, and even over 2.7 million in the previous year. In both years the average employment rate was 64.6 percent (1995) and 65.2 percent (1996). For the year 1996 the German Federal Statistical Office’s statistics for foreign countries show an employment rate of 71.9 percent for men and 58.7 percent for women. Denmark is thus at the top of the league in the European Union for both the average employment rate and the rates for men and women. It exceeds, albeit only marginally, the traditionally high female employment rate in Sweden. Denmark is only beaten by the USA as regards the employment rate (Statistisches Bundesamt [German Federal Statistical Office, 1997, 45; 1998, 47).1

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Data of the German Federal Statistical Office [Statistisches Bundesamt] have been chosen for the sake of comparability. On the basis of Danish data, the potential labour force is as high as around 2.9 million and the employment rates are 77.8 percent (average), 82.2 percent (men) and 73.2 percent (women) (Pedersen, 1998, [Labour market]). Pedersen’s data both contain differences in data collection methods (cf. Schmidt, 1998, for example) and were collected closer to the time in question, with the result that the measures taken in Denmark, which will be described separately below, may have affected the data. The following remarks are primarily based on the Danish © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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II. Institutional Regulations relevant for the Labour Market Traditionally labour legislation in Denmark plays a very minor role.2 The majority of regulations affecting the labour market are based on collective bargaining legislation. Regulations that are stipulated by law in Germany – such as protection against dismissal, as well as rulings on working hours and rest and lunch breaks – are stipulated by contract in Denmark by the unions and management themselves, also a consequence of the very high degree of trade union membership of 80 percent. The only exceptions are the legislation on minimum holiday entitlement (currently five weeks per year), maternity protection, and the so-called 11-hour law, which stipulates that there have to be at least 11 hours between the end of one work shift and the beginning of the next. On the other hand there are no legal restrictions on overtime (Döhrn/Heilemann /Schäfer, 1998, 318). This predominantly self-regulatory legislation dates back to the previous century (1899), when, after a long industrial dispute between the umbrella association of the Danish employers’ associations (DA) and the Danish Confederation of Trade Unions (LO), a compromise was reached, the key points of which have been maintained to this day. To make it easier to reach compromises in difficult negotiations, conciliation boards have been established. Their members are nominated by the government, based on proposals put forward by both employers and unions, yet they carry out their duties independently. Only if the conciliation board believes that the differences between the parties to a collective agreement are irreconcilable and cannot be solved in negotiations can industrial action be taken. In contrast to the strict restraint shown by the German state in wage bargaining, the Danish parliament or government are authorised to prevent or end industrial stoppages if they believe that the damage the industrial action is expected to cause or has already caused is too great for the general good. In the past parliament and government have made use of this right on several occasions (2.2.2 Wage negotiations). Specifically this takes the form of the previously existing wage settlement being extended by law, yet including the outlines of the compromise proposed by the conciliatory board as much as possible. The sources, as they are partly more up-to-date. Notwithstanding the existing differences in standards they also give an overview of developments over time. 2 The following remarks are partly based on information about Denmark available in the internet (cf. the numbered points listed separately under 0.5 Key data [http://www.iasberlin.de/ersep/dk_d/00500001.htm]; cf. also Madsen, 1998a, 616f.). © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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most recent example is a strike for an extension of annual leave, which was ended by law in spring 1998. The acceptance of such state intervention is surprisingly high in Danish society, which is otherwise oriented towards consensus politics (Döhrn/Heilemann/ Schäfer, 1998, 317). The labour market has always been fairly flexible, in particular as dismissal protection has no great role in Danish legislation and because redundancy schemes based on social criteria are as yet practically unknown and redundancy payments are negligible. (Emmerich, 1998, 402). Generally speaking there is also agreement between management and unions that a small but open economy whose industrial activity is often limited to specific niches in the market has to react flexibly (Emmerich/Werner, 1998, 6). Naturally, this flexibility is – as mentioned above – also based on the fact that the majority of jobs lost in the private sector have been accommodated within a service sector focussing on state services. An additional factor is a generous system of insurance against unemployment via unemployment benefit and state welfare (Emmerich/Werner, 1998, 6; OECD, 1996, 50). Insurance against the risk of redundancy is not subject to any compulsory state regulations. Instead there are so-called unemployment insurance funds, which are operated as private associations of workers, employees and even freelancers (in January 1997 there were 37 of these state-recognised funds). The high level of membership is document by the fact that in September 1996 around 2.4 million Danes were members of an unemployment insurance fund (1.4.1 unemployment insurance funds, 1). The funds provide a considerable range of services. Provided an employee had a job for at least one year, which, incidentally, may also have been subsidised by the state, and was a member of a state recognised unemployment insurance fund, they are entitled to up to 90 percent of their previous salary (a maximum of DKR 2,360 per week, around € 319).3 The time for which employees were entitled to such payments was a maximum of 2½ years, until it was changed in 1994, although, with a bit of skill, it was possible to extend this time period by taking part in training courses. The period of entitlement was then extended to a maximum of seven years, but was reduced to five years in 1996. Since 1994 it has not been possible to gain further entitlement by participating in training courses

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This and all the following figures in euros are based on the exchange rate of € 0.135 for one Danish krone. © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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(Döhrn/Heilemann/Schäfer, 1998, 319). Under certain conditions, however, it is even possible to claim holiday pay. Of course, this generosity has its price. In addition to a “labour market contribution” of 8 percent of wages, there are additional separate membership fees, which can amount to around DKR 3,800 a year (around € 513), as well as state allowances and employers’ contributions. In view of this state of affairs it is naturally not surprising that – as will be discussed below – the regulations regarding what is a “reasonable” job offer are stringent and that unemployed members of insurance funds have to agree to undergo training measures if they do not want to lose benefits. Those who are not entitled to unemployment benefit receive welfare benefits. The level of these payments is so high that there is hardly any incentive for those with low qualifications to take up work. In 1994 social security contributions made up over 22 percent of the state budget (including, of course the allowance for the unemployment insurance funds), and had thus almost doubled within the previous 25 years. In the meantime, however, the level has fallen slightly (Döhrn/Heilemann/Schäfer, 1998, 319 f.). One of the peculiarities of the Danish labour market regulations is the fact that vocational training is not seen as the task of companies. Danish trainees thus do not receive wages or a training remuneration, but a kind of “trainee grant” paid by the state. Currently it is around DKR 3,500 (around € 470) per month. In the past there have clearly been difficulties in coordinating this scheme with the regulations for unemployment benefit. Those who decided not to undergo proper training and took on (unskilled) manual work instead could, after – perhaps deliberately – being made redundant, obtain benefit for a period of several years which was more than twice as high as the trainee grant. If it is also taken into consideration that the state education institutions (commercial and vocational colleges, universities) responsible for training were suffering from a shortage of staff and funding, it is understandable that up to 40 percent of Danish school leavers didn’t undergo any regular vocational training (Werner, 1996; Andersen, 1997, 134). The unemployment discussed above is thus not only attributable to the two oil crises and other structural inadequacies; it is primarily also due to shortcomings in qualifications. “Thus women, young people and people with low qualifications are still particularly affected by unemployment.” (Emmerich/Werner, 1998, 3).

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III. Interim Assessment: An Urgent Need for New Legislation In the light of the above brief outline of macroeconomic developments and institutional regulations it becomes clear why the Danish government acknowledged an urgent need for action at the beginning of the 1990s. Following the Danish tradition of consensus democracy, it did without lengthy theoretical considerations and protracted political debates and decided to implement a policy mix of measures intended to free the Danish welfare system of negative developments, lower the unemployment rate and give the labour market back some of the flexibility it had lost. At the same time the – albeit tacit – aim was to consolidate the state budget in the mid-term with a view to complying with euro entry criteria. The main features of this bundle of measures are outlined in Part B. This is followed in Part C by a summary and brief evaluation of outcomes achieved so far. The article concludes with an outlook in Part D, which attempts to draw conclusions for Germany from developments in Denmark.

B. Labour Market Policy from 1994: A Policy Mix of Supply and Demand-oriented Measures I. Labour Market Policy in the Broader Sense: Supply and Demandoriented Measures coupled with the attempted Consolidation of Public Finances in the Medium Term In 1993 the Danish government laid down a spending programme which aimed to make investments in the public sector and boost private building investment. The intention was to bolster the confidence of the stagnating industry by taking a courageous step: for if the state cuts spending in times of economic downturn, it only intensifies the already pessimistic attitude of economic agents. The mutual opportunities for exchange are then not used, as companies revise their sales expectations downwards due to the state’s restraint and private households feel that their purchasing power is limited (Franke, 1986, 267 f.). Yet Denmark did not exclusively bank on simple multiplier effects to stimulate overall demand, which – as experience in Germany shows – have rarely been effective (Franke, 1985), but also had considered supply-oriented aspects at the same time. This includes a

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reduction of the tax rate, which was extremely high even for low and medium incomes.4 As a countermeasure the basis of assessment for taxation was extended, and an ecologically motivated tax reform (so-called eco-taxes or “green taxes”) was initiated, the overall extent of which is quite considerable; the green tax rate rose from 10 percent to around 15 percent. In effect this was nothing more than an increase in existing taxes on energy consumption (including petrol tax) and water consumption. This was coupled with a levy on CO2 emissions for industry and businesses, as well as an SO2 tax for all consumer groups (Emmerich/Werner, 1998, 4; Jänicke et al., 1998, 9; cf. also OECD, 1999, 11). This fiscal policy initiative did in fact set a economic upswing in motion, which has continued to this day (Walwei, 1998, 342), which from 1996 onwards led to real growth rates in the gross domestic product of 2.7 to 2.9 percent, and which also eased the strain on the labour market to a degree (OECD, 1999, 11). The resulting increase in tax revenue was consistently used to further reduce national debt, which had continued to rise due to the spending programme, which was initially financed on credit. Since 1997 the Danish state budget has been more or less balanced (Emmerich/Werner, 1998, 3 f.), and overall debt – as a percentage of gross domestic product – dropped from 80 percent in 1993 to only 60 percent in 1998. The OECD has thus certified that Denmark has since met two crucial criteria for membership of the European currency union (OECD, 1999, 4 f.). In the meantime, growth, stimulated by domestic consumer demand, has taken on proportions that have caused the OECD to issue a warning; this is above all because they believe that local government authorities have since become too eager to spend. This is linked with their concern that inflationary developments could be rekindled (OECD, 1999, passim). As previously mentioned, the government succeeded in reducing the average annual inflation rate for the years 1993 to 1996 to 1.8 percent. The upward trend in prices remained at a remarkably low level of 1.7 percent in 1997 too (facts about danmark; cf. also OECD, 1999, 3). The tax reform of 1993/94 was followed by a further reform in 1998, which aims to alleviate the taxation of savings. Naturally, the OECD have advised that it is in the interests of a supply-oriented policy to reduce taxes on income from capital, which are still too high 4

Compared to German tax rates the income tax rate (income tax including social security contributions) in Denmark is still substantial even after the reform of 1993. For modest incomes of DKR 32,600 (around € 4,400) a year, the tax rate was only reduced from 50.63 percent to 43.51 percent.

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in their view; corporate income tax, for instance, is still above levels in the other Scandinavian countries (OECD, 1999, 11). However, supply-oriented measures also include all those reform measures which intend to boost the faltering flexibility of the labour market, and thus to lower the dramatically high levels of unemployment. This includes a bundle of regulations and schemes that are rather confusing at first sight, whose purpose is to adjust the labour supply to the requirements of labour demand (active labour market policy). Yet there is also labour market policy thinking behind a range of measures that cannot be described as supply-oriented in the traditional macroeconomic sense. These aim to reduce the number of people looking for work directly and permanently, or at least for a long period of time (passive labour market policy). It is not always easy to clearly differentiate between active and passive policies: another reason for overlap is that, in line with legal commentaries, even the subsidising of employment is classified as a passive measure, although this does not actively aim to create qualification opportunities for unemployed people who, due to their low level of training or their loss of qualifications during a long period of unemployment, have had difficulties to find work on the regular labour market. The positive economic development was favoured by the behaviour of management and the unions. Here the restraint shown by the trade unions is of particular note; thus far they have been content with moderate wage settlements (Döhrn/Heilemann/Schäfer, 1998, 318) and have not opposed cuts in entitlement to unemployment benefit and the more rigorous criteria for the definition of a reasonable job offer. From time to time the Confederation of Trade Unions even voices its agreement that increased pressure from the state is in the interests of employees at the end of the day (Gamillscheg, 1998b). Unlike the behaviour of the German trade unions, the Danish employees’ organisations have also shown restraint thus far regarding the reduction of the very high level of wage drift in the interests of labour market flexibility (Döhrn/Heilemann/Schäfer, 1998, 318).

The top rate of 68.70 percent, which applied to incomes as low as DKR 168,000 (about € 22,700) and upwards, was only reduced to 62.25 percent (Andersen, 1997, 144). © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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II. Labour Market Policy Measures in the Stricter Sense 1. Active Labour Market Policy: Adjustment of Labour Supply to the Requirements of Labour Demand a) Objectives and Legal Basis The two central objectives of active labour market policy can be described as follows. Its aim is, on the one hand, to combat youth unemployment and, on the other hand, to reduce existing long-term unemployment, as well as to prevent the unemployed labour force from drifting into long-term unemployment. By implementing appropriate measures, the government of the day strives to allow the labour market to reassume its function of balancing labour supply and labour demand; into the 1990s experience had shown that despite increased spending by the welfare system, unemployment had continued to rise and that the phenomenon of so-called mismatch unemployment was continuing to spread. As already mentioned, a major factor in this was misdirected youth training incentives (easy access to high unemployment benefit coupled with significantly lower training payments) (Andersen, 1997, 130 ff.). Thus Denmark was under two-fold pressure: it was clear that – without suitable measures – welfare spending would remain unchecked and continue to grow exponentially; on the other hand, its partly niche-oriented industry was obviously facing cutbacks in its urgently needed flexibility, because – despite high unemployment – it often could not find staff with the required qualifications. Thus in the middle of 1993 the Danish parliament passed three major reform laws, which took effect from 1 January 1994: the Law on an active labour market policy, the Law on leave schemes and the Law on local authority activation (3.0.1 Active labour market policy). The latter law is based on an activation of the principle of subsidiarity, as it shifts the responsibility for the required labour market policy measures to a regional and local authority level to a greater extent than before (Madsen, 1998b, 38). A tacit motive for this transfer of responsibility was also clearly the fact that it is easier to actually implement and oversee the greater duties imposed upon the unemployed at more local levels. The above-mentioned law on leave schemes forms the basis for passive labour market policy, which will be dealt with below.

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In 1994 the possibility of securing continued entitlement to unemployment benefit – irrespective of age – by temporarily accepting subsidised work was abolished. Additionally, the former entitlement to unemployment benefit for a maximum of seven years (even nine years was possible for those who were particularly skilled in exploiting the system) was reduced to five years and from 1998 even to four years for people both under 25 years of age and for those over this limit (Emmerich/Werner, 1998, 7; Gamillscheg, 1998b; Madsen, 1998b, 36). In this context it must also be mentioned that the period of entitlement is divided into two phases. The first phase of two years is called the support period, the following period is referred to as the so-called activation period. During the first phase the unemployed person is given a great deal of responsibility for rejoining the labour market. This is specifically reflected in the duties connected with the measures, which will be discussed separately below. Yet the longer someone has been unemployed, the more difficult it is for them to be reintegrated into the regular labour market. The term activation phase is thus intended to show that the employment service has to develop special activities to increase the employment prospects of unemployed people. (3.0.1. Active labour market policy, 3). When the period of entitlement to unemployment benefit ends definitively, unemployed people receive lower payments from social security. However, the OECD (1996, 50) describes the level of social security as very generous in comparison to the rest of Europe. Since 1994 the resulting low incentive to accept work has been tackled through legislation. Local authorities now have the right to employ people on social security in community work after 13 weeks of payments (Döhrn/Heilemann/Schäfer, 1998, 320). The authorities clearly do make emphatic use of this right. In addition, the local authorities are obliged to offer the long-term unemployed activation programmes with the aim of perhaps being able to find employment for them after all. This catalogue of programmes covers measures which serve the purposes of information and instruction, individually oriented plans and job training. Unemployed people on social security can also take advantage of start-up funding if they want to set up their own business (3.6.2.DK-vi.2 Local authority activation). Particularly in the case of those intending to set up their own businesses, information and instruction, in the form of the drawing up and approval of a business plan, take on particular importance.

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b) The Specific Measures To tackle youth unemployment it is envisaged that, after being unemployed for six months, young people without vocational training should have the right, and at the same time the duty, to take part in a training scheme, which must last for at least 18 months (3.0.1 Active labour market policy). In this way the persons involved are intended to be given both general knowledge and key vocational skills in order to improve their chances on the job market. Additionally, unemployment benefit is reduced by 50 percent during this period. Those who refuse without good reason to take part in a scheme of this kind lose part of their entitlement to unemployment benefit (Gamillscheg, 1998a). The fact that since this reform young people without training have no longer been able to receive considerably more money from unemployment benefit than in proper training has had a positive effect: two thirds of young unemployed people found a new job or began training within the first six months (Madsen, 1998b, 38). To increase the training capacity for young people, a larger number of companies were permitted to offer practical training. This measure was complemented by the possibility of completing practical training at a commercial or technical college if a traineeship post cannot be found on the regular labour market (3.6.1.DK-iv.1 Vocational training). Foreign unemployed workers – irrespective of their age – are required to complete a language course in order to continue receiving unemployment benefit if their knowledge of Danish is insufficient (Gamillscheg, 1998b). People who have been made redundant have the right to have a so-called individual plan of action drawn up for them in coordination between the authorities and the person concerned six months at the latest after losing their job. (3.1.1.DK-i.1 Individual plan of action). The declared intention behind this is that the state employment service should select job offers and suggest them to the unemployed person, taking into consideration both the personal needs and wishes of the person concerned and the requirements of the labour market, i.e. aspects of labour demand such as qualifications, economic sector and regional needs. As the criteria for what makes a reasonable job offer have been made considerably more stringent, unemployed people – despite their personal preferences – are clearly in-

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duced to accept any offers made, as they otherwise risk losing their entitlement to unemployment benefit.5 The individual plan of action can involve the unemployed person having to complete retraining programmes in order to obtain skills specific to a particular industry and thus be found a job in companies suffering from a lack of suitable staff. This retraining is generally organised in the form of (regular) job training or as individual job training (3.1.2.DK-i.2 Job training; 3.1.3.DK-i.3 Individual job training). Both have the objective of improving the employment prospects of unemployed people on the regular job market by providing specific vocational qualifications. In job training unemployed people are given a job at a private or state employer, who in return receives a wage cost subsidy, which was DKR 43.77 (around € 6) per hour in March 1995. A job of this kind is available for a period of two years, although the subsidy runs out after one year. The idea behind this is clear: after one year the employee’s specifically vocational skills and thus their productivity are meant to have improved so much that a wage cost subsidy is no longer necessary. Individual job training comes into consideration when the person concerned encounters particular difficulties in finding a place in regular job training. The reasons for this may be physical or psychological in nature, or be due to having been unemployed for a long time. In these cases individual job training is thus primarily offered in the public sector. Yet the law also envisages employment possibilities in private associations, private households, and sport and cultural organisations. As mentioned above, the long-term unemployed now receive social security after being on unemployment benefit for four years. At the same time the responsibility for activation programmes is transferred to the local authorities. The long-term unemployed are particularly dependent on individual job training. In this respect the pool jobs scheme – perhaps equivalent to so-called ABM jobs in Germany – play an important role (3.0.1 Active labour market policy, 2 f.). This includes jobs limited to up to three years in duration in the public sector, and above all in the fields of environmental protection and conservation, culture, local public transport, housing, education, the labour market and the health system. They are allocated to people who were unemployed for at least two of the previous three 5

For instance, those who refuse a job offer twice in one year without due reason, or quit their job twice in one year without any plausible reason or have been dismissed for misconduct at work

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years. However, the wages are not particularly luxurious; they are equivalent to those for people in state vocational training. Thus this can be seen as a kind of secondary labour market. But in view of the already substantial number of employees in the public sector – as shown previously – the declared main aim of this measure seems extremely dubious: the intention is to create additional permanent jobs in important areas of society in order to cover the alleged existing demand for services and to carry out urgent tasks (cf. 3.0.1. Active labour market policy, section 3.0.1.3). A further possibility of improving the job prospects of young people or other disadvantaged groups among the unemployed consists of the local authorities buying training courses at the appropriate education institutions and making participation in such courses compulsory (3.6.3.DK-vi.3 Fee-based training programmes). The former, sometimes peculiar range of programmes of this kind with questionable relevance for future employment (ceramics, tantra yoga, silk painting; cf. the perhaps somewhat polemical article by Werner, 1996) has since been significantly streamlined. As a further element, vocational training leave serves the aim of vocational further training (3.1.5.DK-i.5 Vocational training leave). Unemployed people, employees and even freelancers can apply for this form of leave, provided they are aged over 25, are a member of an unemployment insurance fund and have worked for at least three of the previous five years. The length of vocational training leave can be between a week and a year. During this period holiday pay of up to 100 percent of the highest rate of unemployment benefit is granted. However, the proposed training must be specifically vocational in nature, i.e. studying or post-graduate courses cannot be subsidised. Vocational training leave does not only pursue the aim of job-related training as such; the legislative hopes that this labour market policy scheme will also lead to job rotation. If the job that has been vacated in order to take leave is filled by an employee who already works for the company in an inferior post, they can thus be trained in new tasks. If the post is even filled by someone who is unemployed, there is the possibility that they can gradually gain qualifications and be integrated permanently into the job market. Vocational training may indeed serve the purpose of the improved coordination of labour supply and labour demand. In this respect this labour market policy measure can be considered part of active labour market policy. On the other hand, however, it cannot be lose their entitlement to unemployment benefit (1.4.1. Unemployment insurance funds, 3). © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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denied that the labour supply – as the figures available for 1995 and 1996 show (33,000 and 32,000 people respectively) – is at times significantly reduced. The people undergoing further vocational training are naturally not listed as looking for work. This scheme of paid vocational training thus goes beyond passive labour market policy. Individual plans of action and vocational training leave only make sense if they are accompanied by appropriate retraining and further training programmes. The state employment service does bear responsibility for vocationally oriented training programmes, but, as these are generally geared towards the needs of the labour market or specifically towards the interests of particular companies, they are carried out in close cooperation with management and the unions. If the schemes are very closely tailored to companies’ needs, the latter have to pay the overall costs. Otherwise a subsidy for the trainers’ and teachers’ salaries can be paid. At present there exist schemes for over 50 vocational fields (3.4.1.DK-iv.1 Adult vocational training; 3.4.2.DK-iv.2 VTP and IDV courses). The two other leave schemes, which will be discussed in the following section, namely parental leave and sabbatical leave, are basically even more typical of passive labour market policy (3.1.6.DK-i.6 Parental leave; 3.1.7.DK-i.7 Long-term leave). However, the intention behind these two leave schemes and the vocational training leave discussed previously is to temporarily reduce the labour supply in order to open up opportunities for unemployed people to gain qualifications through job rotation, even if this is initially by means of temporary job training, with a view to having better chances on the labour market. In this regard these measures are also dealt with in the category of active labour market policy. The possibility to take parental leave has existed since 1995. As in the case of vocational training leave, unemployed people, employees and even freelancers can apply for special leave if they have children. For each child aged eight or under, the parents can take parental leave of 13 to 52 weeks’ duration, either jointly or separately. During parental leave, holiday pay of up to 70 percent of the highest rate of unemployment benefit is granted. The high utilisation level (1995: over 40,000, 1996: over 30,000 people) led to the rate being reduced to 60 percent from April 1997. Nevertheless the local authorities can top up holiday pay by up to DKR 35,000 (around € 4700) a year. Finally, the last leave scheme is sabbatical or long-term leave, which was also introduced in 1995. Employees can arrange long-term leave with their employer for any reason

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whatsoever, lasting from a minimum of 13 weeks to a maximum of a year. However, the key requirement is that the employer offers work to someone who has been unemployed for at least a year. The employee applying for leave must be over 25 years old and fulfil the usual requirements for entitlement to unemployment benefit. The payment is equivalent – apart from the possibility of a top-up by the local authority – to that for parental leave, i.e. up to 70 percent (from April 1997 up to 60 percent) of the highest rate of unemployment benefit. Sabbatical leave is explicitly conceived of as a pilot project, and was launched in March 1999. As yet no detailed analyses have been published. Yet it can be said that this model has not met with a great degree of acceptance. Döhrn/Heilemann/Schäfer (1998, 329) give a figure of 7,500 participants in 1995 and only 1,000 people in 1996. Compared to the two other leave schemes, this is indeed meagre. For both educational leave and parental leave the employment of a replacement employee is not legally required – in contrast to sabbatical leave. Despite this, a certain degree of job rotation is achieved. Madsen (1998a, 620 ff.) reports that over 70 percent of the jobs of those on educational or parental leave were refilled for a limited period. Around 30 percent of them were filled by unemployed people, although the share of those who had been without a job for three months or more was only 13 percent. Start-up funding, which has been available since 1994, aims to provide unemployed people with support in establishing their own company (3.1.4.DK-i.4 Start-up funding). The start-up funding amounts to 50 percent of the highest rate of unemployment benefit and is paid for a period of 2½ years. It is granted on condition that a business plan is drawn up and approved by the state employment service, or by the relevant local authorities in the case of those on social security. Döhrn/Heilemann/Schäfer (1998, 320) show that in 1996 a respectable figure of 11,000 people took advantage of this scheme. Of course, at present nothing can be said about the success that these start-up companies have had.

2. Passive Labour Market Policy: Reduction of the Labour Supply a) Objectives and Legal Basis The general retirement age in Denmark is 67 years of age. The primary aim of passive labour market policy is to ease the strain on the labour market from the supply end by © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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granting employees the possibility of taking early retirement or part-time early retirement from the age of 60 onwards in order to allow younger workers to enter or re-enter the labour market. This approach is not necessarily based on the notion that available work is limited and has to be divided fairly among the generations; the more likely rationale behind it is that the active measures introduced to increase the flexibility of the labour market only take effect after a certain period of time, but that during this period the chances for poorly qualified young people and the long-term unemployed are further reduced. The legislation on early retirement dates back as far as 1979. Since then additional temporary schemes have been launched, depending on the state of the labour market. Of particular note are the legal changes of 1990 and 1996. The possibility of part-time early retirement dates back to legislation from 1994 and an amendment in 1996 (3.7.1.DK-vii.1 Programmes for the provision of early retirement payments; 3.7.2.DK-vii.2 Part-time early retirement payments). It first came into effect on 1 January 1995. Early retirement and part-time early retirement are particularly marked means of reducing working hours.6 In addition there have of course also been numerous attempts to reduce weekly and annual working hours. As mentioned previously, regulations on working hours are in the jurisdiction of management and unions. Weekly working hours were reduced from 43¾ hours in 1974 to 37 hours in 1990. Further reductions have not been made since then, although the legal holiday entitlement of five weeks was extended by two days when the strike of spring 1998 was ended by the government. Significantly, maternity leave was doubled from 14 to 28 weeks between 1981 and 1985 (Madsen, 1998a, 623). Similarly, the leave schemes discussed under active labour market policy also quite clearly result in a reduction of working hours. The possibility of part-time work dates back to legal changes made in January 1994 (3.2.3.DK-ii.3 Work sharing).

b) The Specific Regulations Employees or unemployed people can take voluntary early retirement from age 60 onwards. In doing so they can receive 90 percent of their previous net income provided they

6

The state documentation on these programmes thus rightly is entitled “Working hours” (3.7 Working hours). © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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are members of an unemployment insurance fund. This generous regulation is the reason for the high appeal of the scheme: in 1995 140,000 people had taken early retirement, and in 1996 the figure had already reached 170,000, although it must be taken into consideration that this regulation was phased out as planned at the end of 1996. In contrast, utilisation of part-time early retirement was relatively modest. In the year it was introduced (1995) only 6,000 people took part in the scheme; this figure remained stable in 1996. Participants in the part-time early retirement programme receive an allowance of DKR 58 (around € 8) for every hour less that they work. In addition to the intended reduction of the labour supply, part-time early retirement also aims to allow a smooth transition from working life into life as a pensioner. Working hours have to be reduced by at least a quarter (equivalent to 9¼ hours, based on the legal working week of 37 hours) and by 12 hours at the most (a reduction of around one third). Presumably these limitations and the relatively low financial compensation – compared to voluntary early retirement – are the factors behind the lack of interest in part-time early retirement. The costs of early retirement and part-time early retirement are borne by the state, yet members of the unemployment insurance funds are indirectly involved in the financing via the level of their contribution. Employers are equally involved. The basis for their contribution is the level of valued added tax they are required to pay. The possibility of taking on part-time work has also only played a minor role so far. A series of complicated regulations may well be responsible for this. Part-time work has to be based in the framework of a wage settlement, has to be registered beforehand at the inland revenue office, working hours have to be reduced by whole days (at least two per week) and the regulation has to apply to the whole company in question or at least a specific business unit. Finally the employee has to be issued with a “release certificate” (cf. 3.2.3.DK-ii.3 Work sharing). It is interesting in this regard that part-time work in Denmark fell in the period between 1983 and 1995 from 23.8 percent to 21.6 percent, while in Germany it rose in the same period by 4 percent to more than 16 percent (Emmerich/Werner, 1998, 5); this percentage has risen even further in the wake of numerous new legislation.

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C. Summary and Evaluation of Outcomes I. Remarks on the Outcomes 1. Growth in gross domestic product has accelerated considerably since the mid1990s. According to the European Commission, Denmark only underwent average growth of 2.0 percent from 1991 to 1995. The figure for 1996 was 2.7 percent, and the estimated rates for 1997 and 1998 are 2.9 percent and 2.7 percent respectively (quoted after Emmerich/Werner, 1998, 4). All indications are that growth will slow to 2 percent per year in the near future (OECD, 1999, 3 f.). The balance of trade is positive; trade surplus was 2.8 percent in 1997 (facts about danmark). 2. The industrial sector has been restabilised. It appears that the increase in energy prices resulting from green taxes has been a clear incentive for the development of industrial combined heat and power generation and forms of energy production that use fewer resources. It is a well-known fact that Denmark has always been a world leader in the development of wind turbines. Wind turbines are now Denmark’s third biggest export – after the export of agricultural produce and products for the food and semiluxury goods manufacturing industries (Jänicke et al., 1998, 10). This is a good example of how the export-oriented “niche industry” has found its feet again and been able to assert itself on the global market. The public sector’s share of value added is still extraordinarily high. It is also evident that the measures discussed above taken by the state and the employment service to combat unemployment are very staff-intensive. 3. As discussed previously, inflation has been steady at under 2 percent a year since 1993. In 1997, for instance, it was only 1.7 percent (facts about danmark). Similarly, it must be noted that Denmark has managed to keep net new indebtedness close to zero and to reduce overall debt, in terms of gross domestic product, to 60 percent. 4. Finally, the development of employment is of key importance. The unemployment rate, which normally serves as the main indicator, has continually decreased from its peak of 12.4 percent in 1993 and is now around 6.5 percent. If calculated according to international standards, this of course would mean an unemployment rate of only 5 to 5.5 percent (Emmerich/Werner, 1998, 4; OECD, 1999, 3). Notably, around 50,000 jobs have been created.

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5. These results, seemingly so positive at first sight, of course lose some of their allure if the low population growth is taken into consideration, as mentioned at the beginning of this article (only around 135,000 between 1990 and 1997). One of the factors behind this is that immigration to Denmark is virtually negligible. At the same time, however, this means that if institutional factors affecting the labour market remain constant, the potential labour force – in contrast to Germany – has hardly risen at all (Werner, 1998, 329). In fact the economically active population dropped by around 83,000 people in the same period from 1990 to 1996. (Statistisches Bundesamt [German Federal Statistical Office], 1998, 46). 6. Furthermore, a closer examination of the development of the labour supply reveals that the decrease in the official unemployment figures corresponds fairly exactly to the number of those who either permanently or temporarily no longer qualify as unemployed due to the range of passive labour market policy measures (Emmerich, 1998, 405). It is also clear that the female employment rate has fallen. Yet at the same time it can be seen that youth unemployment has decreased and that the problem of long-term unemployment has been alleviated to a great extent, having decreased by 65,000 people. This means that, on the whole, the measures may have contributed to overcoming temporary imbalances in the labour market (Döhrn/Heilemann/Schäfer, 1998, 322). Of course, it should also be pointed out that this has equally been the result of the correction of misdirected measures (unemployment benefit being higher than the “training grant”), of intensive retraining and education programmes and the stricter rules on what constitutes a reasonable job offer.7

II. An Interim Evaluation The results summarised above should be understood as an attempt to describe the general state of affairs. The very reason that only around five years have passed since the measures were introduced makes it impossible to conduct an analysis of both short-term, immediately observable effects and long-term consequences at the present time. Nevertheless, the following section will highlight some possible long-term developments.

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Firstly it should be noted that, with its pragmatic concept of an entire bundle of supply and demand-oriented measures, the Danish government has managed to bring about an economic upturn and to keep economic activity at a high level up to now. Even if – as the previous chapter has shown – the majority of the reduction in the official unemployment figures is due to the range of leave schemes, it is nevertheless important to note that the resulting redistribution of labour has been considered to be fair and has received the cooperative support of the Danish people. At the same time this means that the degree of satisfaction in the population has increased, which is a not inconsiderable factor for the development of the economy. The consensus and solidarity-oriented approach of Danish society, whose roots lie in the tradition of the welfare state, were also the reason why the reaction of the trade unions has remained moderate to this day. This is a further precondition for positive economic developments in Denmark. It is not only out of a feeling of solidarity with the unemployed that the range of leave schemes have been accepted by the population, but also because these schemes correspond to the life plans and desired quality of life of many of those who welcome the loosening of rigid work regulations and who wish to be able to withdraw from working life for a limited period or to take early retirement, either in order to look after their children or for to further themselves professionally or personally. (Madsen, 1988a, 623). Madsen (Ibid.) also points out that the leave schemes were implemented and accepted at a time when the economy was already booming again. Thus it is feasible that the correction of incentive payments, the improvement of the training system and the provision of practically oriented training courses would also have reduced unemployment without decreasing the existing human capital. The upswing may then have been far more marked. Emmerich (1998, 405) points out negative structural effects (mismatch unemployment) which may occur in the medium to long term if too high a number of qualified employees make use of leave schemes. A further concern is that the reduced labour supply may lead to higher wage pressure and lessen the international competitiveness of Danish companies (Madsen, 1998a, 619). It is doubtful whether the trade

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It should also be added that due to specific statistical definitions youth unemployment has not been measured in line with the OECD standard since the 1990s and thus must be considered to be too low (Döhrn/Heilemann/Schäfer, 1998, 314). © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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unions will be able to maintain their moderate line if the labour supply drops (Madsen, 1998b, 38). Presumably political decision-makers in Denmark have seen this danger; they have at least reacted accordingly. On the one hand some of the labour market policy measures were, from the outset, for a limited period; the possibility to take early retirement, for instance, expired at the end of 1996. In the case of other measures the payments have been lowered, such as for taking a sabbatical year. Consequently the utilisation rate has dropped considerably. Despite this the first bottlenecks seem to be appearing on the labour market, so that even means of allowing older people to rejoin the labour market are being sought (DER SPIEGEL, 16/1998; Gamillscheg, 1998a; 1998b; Hygum, 1998, 3). Especially in this context the declared intention of once more expanding the public sector in the medium to long term via so-called pool jobs is a cause of great concern.

D. A Brief Outlook: What Conclusions could Germany draw from Experiences in Denmark? The debate on the transferability of experiences in Denmark has to consider that fact that Denmark is a small but open economy with a low population. Its economic structures are more homogeneous than Germany’s, and accordingly the structure of the active labour force is far more similar to that of the unemployed than in Germany. Despite all the abovementioned problems it should thus be borne in mind that labour market policy measures that aim to create jobs for unemployed people through leave schemes less easy to implement in a large and less homogeneous industrial society.8 Smaller and open economies are also subject to far greater pressure to conform (Döhrn/Heilemann/Schäfer, 1998, 322; Emmerich/Werner, 1998, 8). In other words, the awareness of the necessity for change only seems to be developing in Germany in the wake of “globalisation”, which is increasingly seen as a serious threat (Berthold/Hilpert, 1999). One example worth following may be the pragmatism with which both supply and demand-oriented measures were combined. In any case it is evident that high tax rates on

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personal income or income from capital have a negative effect. Cuts are effective even if this reduction is financed by an extension of the basis of assessment for taxation. Yet it is certainly doubtful whether substantial green taxes are a model that should be copied by a large country if – as is envisaged in Denmark from 2000 onwards – they reach a level that can hardly be implemented without effecting the balance of tax revenue.9 The benefits for the environment would be negligible, whereas the resulting tax burden would have a negative effect on the objective of the fair distribution of taxation without being able to guarantee positive effects on labour policy (Franke, 1998, 31; Richter/Wiegard, 1997). Of course, this pragmatic approach is – as has been mentioned several times – facilitated by the Scandinavian tradition of the welfare state, whose main virtues include a striving for consensus and the practice of solidarity. This covers the acceptance of state intervention if management and unions no longer seem to be able to reach a consensus of this kind on reasonable conditions. Yet the greater the size, division of labour and anonymity within modern societies become, the more this solidarity becomes normative, and takes the form of an imposed mutual insurance. The resulting problems of moral hazard and the decline in social safeguards are creating an increasing number of difficulties for Germany, whereas the housing and labour situation in Denmark (smaller towns and communities, smaller companies) is not eroding those values that form the basis of solidarity to the same degree as is the case here. If one also considers that disputes have always been at the centre of political developments in Germany for historical reasons, it becomes clear that the striving for consensus in this country is less marked. The disputes between the parties, between the federation and the states, and also between the major trade associations do lead to a compromise in the end, but there are huge differences between a compromise determined by the situation (neocorporatism) and a consensus found based on insights and the will of those involved. This is ultimately the reason why employers associations, trade unions and the state can sit down at one table in Denmark and look for joint solutions, whereas corresponding attempts to forge “concerted action” or “alliances” in Germany have had little success thus far. In

8

The situation is similar in the Netherlands (cf. Hartog/Theeuwes, 1997; van Paridon, 2000). Between 1993 and 1996 tax revenue from environmental and energy levies underwent a significant increase. Continued manifold increases in the tax rates are envisaged until the year 2000 (Jänicke et al., 1998, 9). 9

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any case, the conditions under which “dialogue-oriented economic policy” can thrive cannot be created merely by declarations of intent or decrees (cf. Klump, 2000). For reasons mentioned previously it is clear why Danish society accepts a relatively high state share of added value; in contrast economic growth in Germany is driven more by the development of productivity in the industrial sector (Emmerich/Werner, 1998, 5). Yet it should be pointed out that Denmark managed to overcome the numerous objections to the construction of a bridge link with Sweden over the Great Belt and to begin construction in the mid-1990s. The investment involved amounted to around a quarter of the overall investment volume in Denmark (Döhrn/Heilemann/Schäfer, 1998, 317). Of course, a project of the same scale is not on the cards in Germany, yet a lot would be achieved if a generally more favourable investment climate could be created. The often sceptical to scornful attitude taken to the USA on the other side of the Atlantic clearly shows that there is a great mistrust of market forces in the land of the “social market economy” (Addison, 1997; Leutenecker, 1999; Neubäumer, 2000). Reports on France have also since shown that the means of state dirigisme, part of the tradition of mercantilism, are incapable of bringing about either success in labour market policy or economic growth (Bilger, 2000; Saint-Paul, 1997). Thus as a conclusion it can be said that Danish labour market policy – despite all the criticism of its details – highlights the social conditions in which a climate of trustful and pragmatic cooperation can flourish between management, the unions, and the state. The same is more or less true – as previously mentioned – for the Netherlands (Hartog/Theeuwes, 1997; van Paridon, 2000). Yet these models cannot be seen as simple blueprints and copied; what is important, to conclude with a phrase that is often overused – is a change in mentality.

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References 1. Books and articles Addison, John T. (1997): The U.S. Labor Market: Structure and Performance, in: Siebert (Ed.) (1997), 187-222 Andersen, Torben M. (1997): Structural Changes and Barriers in the Danish Labour Market, in: Siebert (Ed.) (1997), 123-149 Berthold, Norbert/Hilpert, Jörg (1999): Sozialstandards unter globalem Druck: Erhalten, senken, erhöhen? In: Berg, Hartmut (Ed.) (1999): Globalisierung der Wirtschaft: Ursachen – Formen – Konsequenzen, Berlin, 127-156 Bilger, François (2000): Der französische Arbeitsmarkt [in this volume] DER SPIEGEL (16/1998): Erfolgsmodell Dänemark, 13 April 1998, 94-96 Döhrn, Roland/Heilemann, Ulrich/Schäfer, Günter (1998): Ein dänisches „Beschäftigungswunder“? In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, 2/1998, 312-323 Edin, Per-Anders/Holmlund, Bertil (1997): Sectoral Structural Change and the State of the Labor Market in Sweden, in: Siebert (Ed.) (1997), 89-122 Emmerich, Knut (1998): Dänemark: Arbeitsmarktflexibilisierung bei hoher sozialer Sicherung, in: Wirtschaftsdienst, 7/1998, 401-406 Emmerich, Knut/Werner, Heinz (1998): Dänemark. Erstaunlicher Umschwung am Arbeitsmarkt. Erfolge durch angebots- und nachfrageorientierte Strategien, IAB-Kurzbericht, Nr. 13/29. 5. 1998 Franke, Siegfried F. (1985): Konjunkturelle Wirksamkeit, Umfang und politische Durchsetzbarkeit staatlicher Beschäftigungsprogramme, in: Büchner, Karl-Heinrich/Nöth, Wilhelm (Eds.) (1985): Beamtenausbildung zwischen Anspruch und Wirklichkeit, Frankfurt (Main) and elsewhere, 385-405 Franke, Siegfried F. (1986): Arbeitsmarktpolitik in der Demokratie. Zur Auseinandersetzung um Ursachen und Therapie der Arbeitslosigkeit, in: Zeitschrift für Wirtschaftspolitik, 35, 1986, 251-272 Franke, Siegfried F. (1998): Möglichkeiten des Steuerrechts zur Entwicklung umweltverträglicher Energie- und Verkehrstechnologien, in: Steuer und Wirtschaft, 1/1998, 25-31 Gamillscheg, Hannes (1998a): In Dänemark herrscht beinahe Vollbeschäftigung, in: Badische Zeitung, 25 August 1998 Gamillscheg, Hannes (1998b): Mit leicht erhöhtem Druck. Die EU-Kommission lobt die Arbeitsmarktpolitik Dänemarks, in: Stuttgarter Zeitung, 17 October 1998 Hartog, Joop/Theeuwes, Jules (1997): The Dutch Response to Dynamic Challenges in the Labour Market, in: Siebert (Ed.) (1997), 151-184

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Hygum, Ove (1998): Neue Arbeitsmarktreform in Dänemark, in: Kennzeichen DK. Mitteilungen aus und über Dänemark, 47/1998, 2-3 Jänicke, Martin/Mez, Lutz/Wanke, Andreas/Binder, Manfred (1998): Ökologische und wirtschaftliche Aspekte einer Energiebesteuerung im internationalen Vergleich. Gutachten für Greenpeace Deutschland [Environmental Policy Research Centre (FFU) at the Free University of Berlin, FFU repr. 98-2], Berlin Klump, Rainer (2000): Dialogorientierte Wirtschaftspolitik – Ein Weg zu mehr Beschäftigung? [in this volume] Leutenecker, Sabine (1999): Der Erfolg des amerikanischen Beschäftigungsmodells und seine Ursachen, in: Aus Politik und Zeitgeschichte, B 14-15/99, 2 April 1999, 24-30 Madsen, Per Kongshøj (1998a): Arbeitszeitpolitik und Vereinbarungen über bezahlte Freistellungen. Die dänischen Erfahrungen in den 90er Jahren, in: WSI Mitteilungen, 9/1998, 614-624 Madsen, Per Kongshøj (1998b): Das dänische „Beschäftigungswunder“, in: Die Mitbestimmung, 5/1998, 36-38 Meidner, Rudolf/Hedborg, Anna (1984): Modell Schweden. Erfahrungen einer Wohlfahrtsgesellschaft, Frankfurt (Main), New York Neubäumer, Renate (2000): Der amerikanische Arbeitsmarkt – ein Modell für die Bundesrepublik Deutschland? [in this volume] OECD (1996): Economic Surveys, Denmark 1996, Paris OECD (1999): Economic Survey of Denmark, January 1999 [http://www.oecd.org//eco/surv/esuden.htm, 16.06.99] van Paridon, Kees (2000): Arbeitsmarktentwicklung in den Niederlanden seit 1983 [in this volume] Pedersen, Michael (1998): Danmarks Statistik, 19-1-98 [http://www2.dst.dk/internet/k16/italuk98/ uk9809.htm, 16.06.99] Richter, Wolfram/Wiegard, Wolfgang (1997): Die Ökosteuer in der Waagschale der Ökonomie. Abgaben auf Emissionen und Energieverbrauch lassen sich nicht mit Beschäftigungswirkungen und Besteuerungseffizienz rechtfertigen, in: FAZ, 3 May 1997, 15 Saint-Paul, Gilles (1997): Labour Rigidities and the Performance of the French Economy, in: Siebert (Ed.) (1997), 29-50 Schmidt, Dorothea (1998): Zur internationalen Vergleichbarkeit von EU-Arbeitslosenstatistiken, in: Zeitschrift der Freiburger Wirtschaftswissenschaftler, 2/1998, 32-34 Siebert, Horst (Ed.) (1997): Structural Change and Labor Market Flexibility: Experience in selected OECD Economies, Tübingen Statistisches Bundesamt (Ed.) (1997): Statistisches Jahrbuch für das Ausland 1997, Wiesbaden Statistisches Bundesamt (Ed.) (1998): Statistisches Jahrbuch für das Ausland 1998, Wiesbaden © Prof. Dr. Siegfried F. Franke • University of Stuttgart

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Walwei, Ulrich (1998): Beschäftigungspolitisch erfolgreiche Länder: Konsequenzen für Deutschland, in: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, 2/1998, 334-341 Werner, Heinz (1998): Beschäftigungspolitisch erfolgreiche Länder – Was steckt dahinter? In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, 2/1998, 324-333 Werner, Henry (1996): Kommentar: Wirtschaft. Knackt den Jackpot! [http://ourworld.compuserve. com/Homepages/HenryWerner/Kommwirt.htm, 08.10.98], first published in: Nordeuropaforum, 2/1996

2. Articles and information in the internet with no listed author facts about danmark [http://www.investindk.com/facts/nyefacts/factsaboutdk.htm, 16.06.99] 0.5. Key data [http://www.ias-berlin.de/ersep/dk_d/00500001.htm, 08.10.98] 1.4.1. Unemployment 17.06.99]

insurance

funds

[http://www.ias-berlin.de/ersep/dk_d/00600077.htm,

2.2.2. Wage negotiations [http://www.ias-berlin.de/ersep/dk_d/00700029.htm, 17.06.99] 3.0.1. Active labour market policy [http://www.ias-berlin.de/ersep/dk_d/00801328.htm, 17.06.99] 3.1.1.DK-i.1 Individual plan of action [http://www.ias-berlin.de/ersep/dk_d/00803136.htm, 17.06.99] 3.1.2.DK-i.2 Job training [http://www.ias-berlin.de/ersep/dk_d/00803141.htm, 17.06.99] 3.1.3.DK-i.3 Individual job training [http://www.ias-berlin.de/ersep/dk_d/00803148.htm, 17.06.99] 3.1.4.DK-i.4 Start-up funding [http://www.ias-berlin.de/ersep/dk_d/00801353.htm, 17.06.99] 3.1.5.DK-i.5 Vocational 17.06.99]

training

leave

[http://www.ias-berlin.de/ersep/dk_d/00803155.htm,

3.1.6.DK-i.6 Parental leave [http://www.ias-berlin.de/ersep/dk_d/00803162.htm, 17.06.99] 3.1.7.DK-i.7 Long-term leave [http://www.ias-berlin.de/ersep/dk_d/00803170.htm, 17.06.99] 3.2.3.DK-ii.3 Job sharing [http://www.ias-berlin.de/ersep/dk_d/00801373.htm, 17.06.99] 3.4.1.DK-iv.1 Adult vocational training [http://www.ias-berlin.de/ersep/dk_d/00800341.htm, 17.06.99] 3.4.2.DK-iv.2 VTP and IDV courses [http://www.ias-berlin.de/ersep/dk_d/00801387.htm, 17.06.99] 3.6.1.DK-iv.1 Vocational training [http://www.ias-berlin.de/ersep/dk_d/00800045.htm, 17.06.99]

© Prof. Dr. Siegfried F. Franke • University of Stuttgart

Flexibility and Solidarity – Pragmatic Approaches in Denmark’s Labour Market Policy

29

3.6.2.DK-vi.2 Local authority activation [http://www.ias-berlin.de/ersep/dk_d/00803179.htm, 17.06.99] 3.6.3.DK-vi.3 Fee-based training programmes [http://www.ias-berlin.de/ersep/dk_d/ 00803179.htm, 17.06.99] 3.7. Working hours [http://www.ias-berlin.de/ersep/dk_d/00801229.htm, 17.06.99] 3.7.1.DK-vii.1 Programmes for the provision of early retirement payments [http://www.iasberlin.de/ersep/dk_d/00801415.htm, 17.06.99] 3.7.2.DK-vii.2 Part-time early dk_d/00801447.htm, 17.06.99]

retirement

payments

[http://www.ias-berlin.de/ersep/

© Prof. Dr. Siegfried F. Franke • University of Stuttgart