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OECD Economic Surveys: Denmark 2005

image of OECD Economic Surveys: Denmark 2005

The 2005 OECD Economic Survey of Denmark, which has the most equal income distribution among OECD countries and has among the highest incomes, focuses on sustaining growth and preserving the welfare system in the face of a rapidly ageing population. In particular, it examines governmental reforms to foster fiscal sustainability and labour reforms to boost the labor supply. It also examines how improving competition could boost growth and how improving the educational system could raise productivity.

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Key Challenges

This chapter discusses the long-term challenges facing the Danish economy. It reviews recent performance regarding per-capita incomes, productivity growth and income inequality. The fundamental challenge is to maintain growth in living standards while preserving the welfare system. The chapter compares the government’s and the Welfare Commission’s estimates of fiscal sustainability in the face of an ageing population. The first way to meet this challenge is to increase...

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