Best of the financial columnists
The world’s best welfare system?
Editorial
The Economist
In 2015, a convincing American economics paper came to a “hard-nosed conclusion”: cuts to welfare payments led to ajobs boom, says The Economist. The idea that “lavish welfare benefits discourage work” is commonly accepted. So why does munificent Denmark have one of the “best-functioning labour markets”? Danes get more than 80% of previous earnings after six months out of work, sometimes nearly 100%. Such generosity is the “flip side of its liberal regulation of employment contracts”,
