Internationale Politikanalyse International Policy Analysis International Policy Analysis Mogens Lykketoft The Danish Model A European success story The Danish Model is a reference for many other countries regarding the design of welfare policies. The basis characteristics of the Danish Model are: ­A fairly even distribution of qualifications, a high labour market participation by both men and women. ­An extensive redistribution through a progressive taxation system, paying for public services within education, child care, care of the elderly and health care. ­A uniquely small disparity in living standards compared with other countries. ­The rather heavy taxation – especially on private income and con­sumption – does not harm employment – on the contrary it stimu­lates competitiveness through investment in education, research and development, good infrastructure, etc. Low corporate taxes and only small mandatory social contributions from the employers. ­A public sector which in international comparison is highly effective and citizen-friendly. Corruption is practically non-existent. DECEMBER 2009