This paper studies labour market policy in a society where differently gifted individuals can invest in training to further increase their labour market productivity. Furthermore, the government seeks both efficiency and equity. Frictions in the matching process create unemployment and...

The paper studies the impact from variations in unemployment on retirement among older workers. We integrate unemployment variations with early retirement programs and other pathways out of the labor force. The paper describes retirement programs, policy changes, labor force participation among...

We use a randomized survey to study how discrimination affects parenting choices. In our survey, parents with young children choose between two public daycares, which are described by testimonials from other (fictitious) parents. The testifying parents in the first daycare describe a free play...

We develop a two-sided multidimensional matching model of the market for CEOs that allows for both pecuniary and non-pecuniary (amenity) compensation. The model is estimated by maximum likelihood estimation using matched CEO-firm data from Denmark. We show that CEOs have preferences for building...

This note presents evidence of the following gender asymmetry: the job-finding effort of married men and women is affected by the income of their spouses in opposite directions. For women, spouse income influences job finding negatively, just as own wealth does: the more the man earns and the...

Draft lottery data combined with Danish longitudinal administrative records show that military service can reduce criminal activity for youth offenders who enter service at ages 19-22. For this group property crime is reduced for up to five years from the beginning of service, and the effect is...

Denmark has drawn much attention for its active labor market policies, but is almost unique in offering a voluntary public unemployment insurance program requiring a significant premium payment. A safety net program - a less generous, means-tested social assistance plan - completes the system....

All over Europe, ageing populations threaten nations' financial sustainability. In this paper we examine the potential of immigration to strengthen financial sustainability. We look at a particularly challenging case, namely that of Denmark, which has extensive tax-financed welfare programmes...

In this paper, we estimate the effect of workfare policy on crime by exploiting two exogenous welfare policy changes in Denmark. Our results show a strong decline in the crime rate among treated unemployment uninsured men relative to untreated uninsured and unemployment insured men, and part of...

We use a novel large-scale survey of firms, implemented in Denmark in 2021 and linked to administrative data, to study why firms lay off workers instead of cutting wages. Our questions on layoffs, wage cuts, and the link between them provide new insights into firms' strategies for adjusting...