Work and the Welfare State

Does it pay to work? Today this question has become an important issue in the political debate. But what exactly are the Danes’ financial incentives to work, when taxation and the social security policies of the welfare state are taken into consideration?

At the beginning of the 1990s, the Board of the Rockwool Foundation decided to give priority to projects related to this theme. The Research Unit then began its research work on this issue and has maintained its engagement with the research field of Work and the Welfare State ever since.

It is a topic which, in the years to come, will probably become even more relevant, due to the demographic changes that Denmark as well as other European countries are now facing. How can we ensure that there will be a large enough labour force available, when the proportion of elderly people continues to grow in comparison with the number of people engaged in active employment – and at a time when many people expect to have even more leisure time?