35 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE Denmark is known as the Akademikerne (Danish Confederation of Professional Associations). It includes almost 400,000 workers, all of whom have completed a level of higher education. This cohort of unions includes the Society of Engineers and the Association of Lawyers and Economists, among others. The members of the Akademikerne perform tasks like those of the labor unions, such as helping their members negotiate fair pay and find suitable positions. The Akademikerne is also part of the trade committees, mentioned previously, which create and submit reports to the Danish government on how to best approach the most current workforce trends. The members of the union are well supported and represented, leaving no reason for the union structure to be an inhibitor to seeking an upper-level job (European Trade Union Institute, 2022). Key issues As noted previously, the Danish education system has the necessary facilities to prepare students for tertiary education. At the same time, all Danish and EU citizens have access to tertiary education at no cost. Once they have completed this education, there is demand for workers, and unions are in place to help workers receive adequate wages and navigate the Danish “flexicurity” economic model. The flexicurity model emphasizes employment security over job security, allowing employers to hire and fire freely while also reducing the average duration of unemployment. However, Denmark continues to see a shortage of individuals pursuing bachelor’s and master’s degrees, instead seeking short-term, two- to three-year degrees, equivalent to an associate’s degree in the United States. Reasons include lack of economic incentives due to the Danish job market and tax structure, societal norms such as work-life balance and gap years, the success of the vocational education system, and lack of a clear path from vocational education to college education. Finally, the presence of non–tuition-paying international students adds to the financial impact education has on the Danish economy. Job and financial security incentive An important reason many people pursue tertiary education throughout the world is the common belief that completing this level of education increases job security. Among the OECD countries, the pre– COVID-19 employment rate for tertiary-educated employees was 9% higher than those with less education (OECD, 2019). In Denmark, however, there was a much lower difference, 5%, due to benefits, such as the flexicurity model and employment security, provided for people with all levels of education. Combined with Denmark’s well-developed social safety net, which includes unemployment benefits lasting two years and up to approximately 20,500kr ($2780) a month, the incentive to pursue a longer education or higher-level job is not nearly as strong (European Commission, 2022a). Another important inhibiting factor that Danish students and workers face when deciding to pursue upper-level jobs, for instance, health care, engineering, and law, is that the pay incentive to take these positions is underwhelming versus the rest of the Table 4 Labor shortages for jobs requiring tertiary education Source: Danish Agency for International Recruitment and Integration, 2023.
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