Welfare Systems and the Management of the Economic Risk of Unemployment: Denmark

The developments on the Danish Labour Market and in the Danish Labour Market Policy during the 1990s are described. Part I concentrates on the unemployment protection situation in the beginning of the 1990s and describes the unemployment system as it was in 1993, the year before a reform process of the Danish unemployment protection system began. In Part II the developments in the unemployment protection system from 1994 to 1999 are presented. This section includes a description of income packaging and net replacement rates for people receiving unemployment benefits. Finally the overall development of the system during the nineties is assessed and discussed in Part III.