Given the ageing challenges, there is an increasing pressure in OECD countries to promote longer working lives. This report provides an overview of policy initiatives implemented in Denmark over the past decade. Even if these recent reforms are well in line with the recommendations of the 2005 OECD report Ageing and Employment Policies: Denmark, the focus has been put mainly on the supply side. The aim of this new report is to identify what more could be done to promote longer working lives. As a first step, the government should assess closely the implementation process to ensure that the expected outcomes of the reforms are achieved. More broadly, the strategy should act simultaneously in three areas by: i) strengthening incentives to carry on working; ii) tackling employment barriers on the side of employers; and iii) improving the employability of older workers.
Tackling mental ill-health of the working-age population is becoming a key issue for labour market and social policies in OECD countries. OECD governments increasingly recognise that policy has a major role to play in keeping people with mental ill-health in employment or bringing those outside of the labour market back to it, and in preventing mental illness. This report on Denmark is the third in a series of reports looking at how the broader education, health, social and labour market policy challenges identified in Sick on the Job? Myths and Realities about Mental Health and Work (OECD, 2012) are being tackled in a number of OECD countries. It concludes that the Danish system has a number of strengths that have yet to be used in a more effective way, but also that quite a few changes are needed in order to raise the labour market particiption of people with mental ill-health.
Ongoing reforms of Denmark’s disability benefits and flexjobs are promising, but a stronger focus on helping people with their mental health issues is needed for the reforms to contribute to a sustainable decline in the high rate of unemployment, according to a new OECD report. Past labour market reforms failed because underlying mental health problems of the jobless remained unaddressed.