Employment Friendly Workfare Policies: The Case of Danish Activation Policies

Under the heading of flexicurity Danish activation policies receive international attention because of their perceived ability to curb unemployment and boost employment. Indeed activation has undergone a remarkable transformation in its objectives, target groups and design. From the initial curbing of unemployment among insured unemployed through standard activation offers, the aim of activation today is also to increase labour supply among non-economic active groups through individually tailored programmes. Danish activation policies thus embrace not only active labour market policies but also social and integration policies. Despite widespread popularity and belief in the positive effects of activation, little is actually known about its overall impact on the Danish economy.