Country Study: Denmark – Making work pay, getting more people into work

This study focuses specifically on Denmark's policy options to expand the already high labour supply. The country's starting point in this respect is relatively favourable. The projected increase in old-age related public expenditure is not among the highest in Europe, in part due to the large private-sector share of occupational pensions. Moreover, a high degree of awareness of the issues related to the effects of ageing has been raised and the government is pursuing a medium-term strategy to address this challenge. High general government surpluses have thus been maintained over a number of years, including during the recent economic downturn, and the government debt ratio is being reduced. However, the negative effects of the ageing population on the economy's potential should not be underestimated.