By OECD
ISBN-10: 9264103147
ISBN-13: 9789264103146
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Extra info for OECD Economic Surveys 2003: Denmark
Sample text
In subsequent collective agreements these days were extended to other employees, as well as other parts of the labour market, and the number of days per person has been increased, so that a total of five extra “holiday” days will be at most employees’ disposal in 2004. That would constitute a decrease in annual working hours of 2 per cent if employees choose to use all the extra days, rather than taking them in the form of extra pay. 9 This is partly explained by a falling frequency of part-time jobs among women, as women’s integration into the labour market has deepened and the gap between male and female participation has gradually narrowed.
Lower marginal tax rates introduced in tax reforms since the mid-1980s may also have contributed to curbing the fall in average working hours. Actual average working hours have in fact increased since 1995, mainly due to a fall in the frequency of part-time employment, although some business-cycle effects might also be at work. Nevertheless, in 2001 women were still 50 per cent more likely to be working part-time than men, suggesting that at least some potential for higher average annual working hours in the future may still exist.
These kinds of measures reduce the pressure from population ageing, and implicitly place a larger burden on future generations through the reduction of public standards or offsetting increases in life expectancy. Indeed, if life expectancy in Denmark does not increase from its current level, or the average time spent drawing public old-age pension is held constant, the required general government fiscal surplus would be ¼ to ½ percentage point of GDP lower in 2003. While the distribution of the burden between and within current and future generations is basically a political choice, the country might be forced to take a closer look at the current rules and mechanisms to find ways of reducing future net obligations should it fail to achieve the needed increase in employment.
OECD Economic Surveys 2003: Denmark by OECD
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