Danish labour market policies not suitable for Germany

According to the Institute of the Cologne-based Institute for the German Economy (IW), the Danish Flexicurity model which combines little protection against dismissal with generous unemployment benefits can not be easily applied to Germany the reason being that in Denmark for a long time there has been a completely different wellfare-state model in which there are only small income differences.
In the Danish model all citizens are entitled to wellfare benefits, but one the other hand the tax authorities levy taxes on everybody even on jobless people and wellfare recipients.

The tax rates in Denmark are grouped into three different levels ranging from 38.8% to 53.8%. About 40% of all full-time employees pay the highest tax rate. Furthermore there is a special labour market fee amounting to 8% and value added tax which amounts to 25%.

It seems that the Danish model works due to moral concepts which differ from the German ones given that generous unemployment benefits which amount to 90% of the previous salary do not lead to peole twiddling their thumbs. Another factor is the fact that Danes are obliged to accept job offers. The World Value Survey furthermore revealed that 85% of Danes think that it is not fair to apply for social benefits if one is not entitled to them. In Germany only 63% of those questioned rule out such a me-first mentality.
Further details of the survey in question are available online. GERMAN

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