The View from Elsinore
Hoisted from Comments: Jacob Chrstensen on the March of the Danes:
Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal: The Scandinavian Model: Just some short comments: The 1933 Kanslergade Agreement (Shameless self-promotion: I've written about it) may have a mythical place in Danish history (because the agreement was made on the very same night a certain Mr. Hitler became Chancellor of Germany) but on the labour market there is a longer story of capital-labour cooperation starting with the 1899 September agreement. It hasn't been all roses but in general Danish employers have found Danish Trade Unions a reliable partner.
Anyway, the unemployment situation only eased during the latter half of the 1930s (I don't have access to statistics right now)
The 1993 turn-around is interesting because governments in the 1970s reacted to the economic crisis in good Keynesian fashion by extending the period unemployed could receive unemployment benefit from 1 year to - eh - 4 years. Starting in the mid-80s (under a Conservative government!) more active employment policies were introduced, but initially counteracted by a restrictive fiscal policy. But once the radicalism of the 1970s had worn off, trade unions were favourable to these kinds of employment policies.
Pensions: The Danish pension system is probably unique globally as it combines a general flat-rate tax financed system with collective or individual savings systems - so the flat-rate is tax financed, everything else directly linked to savings and funds. There cannot be unfinanced claims to future payments in the system - unlike the German or the former Swedish systems.
Health care: Yes - but the Danish advantage was that the system was established in 1892 and effectively made a near-comprehensive system in 1933 (formally, this only happened in 1973). But there was no place for insurance companies. What we are seeing, though, is a tendency to establish private insurances in order to by-pass waiting lists in the public system.
Finally, Danes discuss the system's ability to accomodate immigrants. Maybe, so the argument goes, this only works in a homogenoeus and relatively stable culture. Immigrants on the other hand find the high entrance wages a handicap when they seek work. (This would merit a post in itself).
