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2006 OECD Economic Surveys: Denmark 2006

image of OECD Economic Surveys: Denmark 2006

This edition of OECD's periodic survey of the Danish economy finds overall good performance but warns of overheating and a weak outlook.  It examines in more detail raising the labour supply to safeguard welfare, improving educational provision and making incentives more compatible with societal needs, and introducing more flexibility and less subsidy in housing. 

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Human Capital

Getting More and Using it Better

One of the key weaknesses of the Danish economy with respect to reaping the benefits of globalisation is the surprisingly slow progress in human capital formation. Among the 25-34 year olds, only 86% have at least upper secondary education, the lowest level among the Nordics. The share of a youth cohort taking tertiary education is fairly high, but with a typical age of 23 when beginning to study and with prolonged study times, there are too few years left during which the fruits of qualifications can be reaped in the labour market. This chapter reviews government initiatives to improve the quality of education and then looks more closely at how to strengthen incentives to acquire and use human capital.

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