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Advantages of a Universal and Generous Family Policy: The Case of Denmark

Peter Abrahamson

Since WWII Europeans have enjoyed a cumulative expansion of social citizenship rights. The sequencing of types of entitlement is the same everywhere, and family benefits are the last to be granted indicating a well-developed welfare society. Societies vary with respect to the extension of family allowances, child and elderly care and tax policies towards families. The Scandinavian region is a for-runner because of a combined effort of generous universal transfers and services, which has led a family (or women) friendly welfare state. The result is a high female labor market participation rate since generous policies allow women both to be mothers and workers and has resulted in a relatively high absolute fertility rate of 1.9; up from 1.4 in 1983 when the expansion of social services for families took off. The family welfare package has also resulted in low child poverty. Unfortunately, the Scandinavian experience is based on specific preconditions not found elsewhere, so policies cannot readily be copied.