Is there really a welfare state? – Yes, in northern Europe, where the unemployed look for work without stress and where students study without existential fear

It is unlikely that any Dane has heard of the Belgrade band EKV, and it is even less likely that any of the inhabitants of this Scandinavian country know the lyrics: “This is the country for us, this is the country for all our people, this is the house for us, this is the house for all our children.” But these lyrics perhaps best describe the attitude of this northern European country towards its citizens. It does not boast of being the homeland of an “economic tiger,” although it is officially one of the richest ones and although the Danes have high salaries and at the same time very high tax burdens - but not without reason.

In practice, Danes do not know what corruption means, but in everyday life they feel very well what essentially free healthcare, social security, free education and numerous social measures are... Unlike some other countries where shortening the work week does not occur to anybody “because they have to work, not sleep,” the Danes work “only” 37 hours a week and have “as many as” six weeks of vacation, and yet they are highly productive.

The unemployment rate is low. This is compounded by the fact that, thanks to quality measures, the Danes do not perceive the period they spend unemployed for a reason as “the end of the world” but as an almost painless transitional period in which they can live normally, without pressure to look for a new job, or, if they have become bored with their previous occupation, to go for additional education or retraining. This is possible because Denmark is considered a welfare state, in which the same rules and benefits apply to everyone. So perhaps it is not surprising that for years this country has been declared the happiest in the world, although the Danes’ statistics were recently slightly spoiled by the Finns, pushing them to “only” second place. But, on the other hand, Copenhagen holds the title of the happiest city in the world.

Through a Danish lens, the bigger picture is seen, not just personal interest

Yes, the Danes are a people who know how to enjoy the little things in their everyday lives, to ride their bikes in the rain without being bothered by the rain, to not burden themselves with unrealistically high expectations, but to be content with what they can realistically achieve and reach. Perhaps these, along with a high standard of living and guaranteed social security, are some of the main reasons why relevant statistics and analyses rank them among the happiest. But that does not mean that everything in this country is to the liking of every Dane. They are not thrilled about being highly taxed, on average around 45%, nor do all of them believe that such a range of social measures and such investment in education at all levels is needed. There are also objections to the recently raised retirement age. But what seems to be key when viewed through the eyes of the Danes is that most of them see the bigger picture: “Yes, I am not happy that I pay this much tax, but on the other hand, if it were not for them, there would not be all these measures and allocations that benefit the whole of society.” And it is precisely such a life philosophy that seems to be the key reason for the now decades-long survival of the so-called welfare state.

Frederik Olsen, from the Economic Council of the Workers’ Movement, whom we spoke to during a media visit to Denmark organized as part of the Pulse of Europe project funded by the European Union, emphasizes that their vision is a society that is socially and economically balanced.

– We believe that the key to a good society is to have equal opportunities regardless of where you were born or who you come from. We are one of the richest countries in the world, but we have found a balance between relatively high taxes and remaining truly competitive. In Denmark, as in other Scandinavian countries, universalism is very common, and the key to universalism is that social benefits are available to all citizens. This includes healthcare, education, social insurance - confirms Olsen, noting that, of course, in order for the system to be as fair as possible, care is taken to ensure that, for example, those with higher income pay higher taxes, or that it increases progressively.

Olsen points out that Denmark also has a high employment rate, and that most Danes who lose their jobs have a short period of unemployment, that is, long-term unemployment is only 14%, and that there is a high level of gender equality and female employment.

– When someone has a child, they are paid when they go on parental leave, you don’t lose your job. Men also use this leave, and this is something that has been discussed a lot in Denmark. But, of course, every couple has nine months that they can use for this leave as they see fit – he points out, noting that the standard and all these possibilities in Denmark have not always been like this, that the image of the country was quite different in the seventies and eighties of the last century, but that since the nineties this has started to change. He believes that all this has been greatly influenced by Denmark’s membership in the EU, the pegging of the Danish krone to the euro, i.e. a coordinated monetary policy and a fixed exchange rate.

When you look at statistics and research, they show that Denmark is richer than the USA, so Olsen jokes that the American dream is indeed possible, but precisely in Denmark.

– The reasons for the good functioning of the universal welfare model are relatively low inequality, high productivity and a functioning market. This is also confirmed by the fact that, when income is compared with other countries, in Denmark there is not such a disproportion and difference in the percentage of those with the highest and lowest income – emphasizes Olsen.



He points out that the welfare state model is greatly helped by investment in education, which is directly related to social mobility – that if someone from the poorer classes takes advantage of the possibility of free education in Denmark at all levels of education, they have a better chance of choosing a job and employment, but also a high and real chance of leaving the category of the poorest and changing the social status they inherited at birth during their life.

– The labor market is very flexible, you can easily change jobs, which is very important… So, unemployment is not so bad if you know that you can maintain your standard of living and quickly find another job. But it is also the idea that citizens need to invest in their professional education and have different diplomas, degrees, whatever, in order to be flexible in the labor market. In addition, it can be positive for employees to try out some different jobs. And when you have a flexible labor market, then you know that there will be more open jobs and that you will get the opportunity to work in different places – says Olsen, who concludes that the welfare state is definitely worth fighting for.

– Of course, the high tax system is not equally applicable everywhere, especially since the tax system depends on many other factors, but investing in education is one of the most important factors, investing in the employment of vulnerable groups, increasing the employment rate, so that employees contribute their work and income to the state. These are some of the key things for the good functioning of the state – emphasizes Frederik Olsen.

A taximeter that ticks precisely in favor of education

In Denmark, the education system is basically organized as in many other countries - primary, secondary general (gymnasium) and secondary vocational education and higher education. There are certain differences, for example, compared to our system, because in Denmark primary school ends after the ninth grade, and there is also an optional tenth grade, and between primary and secondary there is also the so-called preparatory educational training, for students who need it at the transition between the two levels of education.

However, one of the specific features of the Danish education system is the reform of school financing, primarily secondary schools, which has been gradually introduced over the years, and which has also undergone transformations in the meantime, and is known as the taximeter system. Within it, schools receive money based on the number of students they have, but also on the basis of precisely defined objective criteria for determining the amount of allocations.

The advantages of this system are considered to be that schools of the same profile receive the same amount, of course depending on the number of students, and there is no favoritism of any school, but resources are managed responsibly, which is in the interest of both the schools and the state. The distribution of money to schools also depends on what and how expensive equipment is needed for certain educational profiles, whether the profile requires the existence of a laboratory, and the like. For example, one of the profiles that requires more allocations within vocational schools is flight technician because it also requires the purchase of an aircraft.

The Danish Ministry of Children and Education, under whose jurisdiction secondary schools are also located, as we were told, cooperates with unions and employers precisely in order to constantly keep up to date with the needs and demands of the labor market, in order to make long-term plans regarding the fairest possible distribution of money among schools of the same and different profiles and orientations.

The taximeter system, as we were explained, is still being improved, because as in any financing model there is always something that can and must be improved. One of the challenges in the ministry is that some schools have special campaigns and, for their own economic reasons, convince students that they are good for them and not others, even though certain students would benefit more and would find themselves better in another type of school.

Denmark as a reality, not a myth

What a welfare state looks like in practice in northern Europe is illustrated by the life experience of Belgrader Vlada Botoric, an assistant professor at Zayed University in Abu Dhabi. Botoric spent almost four years in Denmark during his doctoral studies, which, he says, completely changed his view of research, work and life. Before deciding to go to Denmark, Botoric had already completed two years of doctoral studies at the Faculty of Political Sciences in Belgrade. However, he was attracted by an international environment that would approach scientific work in a modern and open way.

– At first, I was surprised by the openness and affirmative attitude of the professors in Denmark - I contacted them by email with a proposal for a research topic, and the response was an invitation to come for a three-month stay, so that we could get to know each other and specify the topic for further application. That’s when my sobering and inspiring Danish experience actually began – recalls Botoric.

At that moment, as he says, Danish universities were strategically oriented towards internationalization, so his passport was an advantage. Vlada applied for a PhD position at one of the most progressive research units of the School of Communication and Culture at Aarhus University.



– Although they were already preparing domestic candidates for that prestigious interdisciplinary position, my host professor literally physically pushed me forward to apply. She said that my topic, precisely because of its specificity, would have a chance. I listened to her - and that changed my life – he says.

He sent the perfected application to several universities in Denmark - and received offers from all of them. However, he decided on Aarhus, an institution that he had previously met and got to like. In this academically rich environment, he had the opportunity to present his research at conferences in New Orleans, Paris, London, spend a research semester at the University of Tokyo, and earn a certificate in the LEGO Serious Play methodology - all with the support of his research unit.

– Although the dissertation work is mostly independent, it is sobering in Denmark. As much as they were surprised by my thoroughness, I was healed by their work-life balance, fitness culture and simplicity of everyday life. I remember the top gyms and my flat stomach – he adds with a smile.

He also remembers Denmark, as he says, for its specific atmosphere - the vivid green and sea expanses, the colorful houses like from Andersen’s fairy tales, but also the grayness, rain and wind.

– I once counted 20 consecutive days of rain. My Danish colleagues laughed at me for counting the rainy days – he says.

He notes that Denmark is often cited in theory as a model of a welfare state, and rightly so.

– During my time there, it didn’t just stay on paper; I really saw what a functioning system looks like, one that aims to improve the quality of life of citizens, including foreigners like me. As a doctoral student, I had an employment contract, a competitive salary, health insurance, and even pension contributions. When my son was born, I was entitled to paid family leave, and no one questioned my right to it, the system simply provided that as an employee I had these benefits, regardless of the fact that I was not a citizen – he points out.

He particularly highlights the feeling of security and trust in institutions. For example, everything is digitalized - from doctor's visits to administration - and there is no atmosphere of bureaucratic hassle. The system trusts you until you give it reason to doubt, and as a foreigner you immediately feel that as a relief.

– One of the memorable moments during my stay in Denmark was when, as is customary in our context, I asked who the members of the doctoral selection committee were and whether I could meet them before making the decision. I remember that the professor at the time, who was my host, looked at me almost in surprise and said: "It's not necessary. The commission is doing its job conscientiously and we trust them.” – he recalls.

Batoric also confirms that in Denmark there is indeed a standard that is often highlighted in statistics and that what makes the difference is precisely the fact that this standard is not reserved only for certain layers of society.

– Whether you are a teacher, postman, nurse or researcher, your salary is taxed highly, but it is also quite balanced in relation to the cost of living. There is not that much difference between professions when it comes to the basic quality of life. People live beautifully, safely, with dignity and without fear of tomorrow – Botoric points out. What was fascinating to him was that barely anyone is tied to one position "at any cost".

People change jobs, choose less stressful ones at certain stages of life, return to additional education, and all this with strong systemic support.

– For those who lose their jobs, the state not only provides financial assistance, but is actively working on reintegration into the labor market. From my perspective, as an employed doctoral student, and later through contact with colleagues from different sectors, I felt that society is based on the idea that everyone has the right to a stable and quality life - regardless of their current position or profession. Of course, this system is not ideal either - in larger cities, such as Copenhagen, housing costs are high, but this is partially compensated for through tax breaks and various subsidies – Botoric describes Danish everyday life, emphasizing that, when you add it all up, he would say that in Denmark no one becomes rich overnight, but almost everyone can live peacefully, healthily and with a sense of dignity, which is perhaps the most valuable form of privilege today.

Finally, this Belgrader with four years of experience in Denmark, to which he occasionally returns, confirms that everything that is said about free education in this country is completely true.

– It is truly free at all levels, including higher education, regardless of the students' origin, as long as they have a regular residence permit in the country. An even bigger surprise was the so-called SU - Statens Uddannelsesstøtte, the monthly support that students receive, and which currently amounts to around EUR 700, which allows them to study without the pressure of having to work full-time while studying. The point is not to give the student everything, but to enable them to study without existential fear – he emphasizes.

As for the financing of educational institutions, he says, it is true that Denmark has been using the "taximeter model" for a long time - which means that the budget is allocated to institutions based on specific indicators: how many students successfully complete their studies, how much a certain area is in deficit in society, what the needs of the labor market are, and even how expensive the programs are due to infrastructure or laboratories.

– This has its advantages because it encourages the efficiency and connection of education with the real needs of society. However, from the perspective of the humanities and social sciences, there is often concern that such a model may favor "profitable" areas, while neglecting fundamental knowledge and critical disciplines that do not fit into the market logic – he emphasizes.

Personally, he adds, he was lucky to be part of an interdisciplinary research unit that had multiple sources of funding, including state grants, EU projects and cooperation with industry, so he did not directly feel the consequences of this pressure. But, he emphasizes, through conversations with colleagues, it is clear that the academic community in Denmark is very closely monitoring how this balance is maintained, between efficiency and social responsibility.

Philosophy of life and work in Denmark on the example of the Lego company

As he emphasizes, it was through LEGO, as part of his research, that he recognized the philosophy of life and work in Denmark. Botoric investigated the relationship between the brand and the fans - how enthusiasts gathered in communities around the brand independently create value.

– Many still do not know that LEGO, although it is today a global multimedia empire, is actually a family company - whose headquarters remain in the small Danish town of Billund. Although present on all continents and in almost every culture, the LEGO company was for decades under the direct management of the founding Kristiansen family. However, in the early 2000s, faced with one of the deepest business crises in the company's history, they made a radical decision: for the first time, they appointed a director who was not a family member - Jørgen Vig Knudstorp – explains Botoric.

Knudstorp joined the company at a time when LEGO was recording huge losses and losing its market identity. Instead of populist cuts, he decided to return to the fundamental values that defined LEGO - quality, creativity, educational value and connection to the community. He focused on the core product - the brick - and established relationships with fan communities that themselves contributed to the development of new products, which also represented the thematic framework for my research.

When his directorial mission was over, the family did not marginalize him, nor did they just thank him. On the contrary - they appointed him to the Board of Directors, which symbolically and essentially showed him lasting trust and recognition for his contribution. And that is what, in my opinion, makes Denmark so special – says Botoric, adding that he sees in that decision a deep reflection of the Danish credo - It is a system that values continuity and knows that long-term stability is more important than quick gains.

Dejan Aleksic

Economic Council of the Workers Movement

Zayed University in Abu Dhabi

Aarhus University

Frederik Olsen

Vlada Botorić

Jorgen Vig Knudstorp

Pulse of Europe

welfare state

taximeter system of financing education