36 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 41 | 2023 EU. Throughout the EU, tertiary graduates make 57% more on average than those with upper secondary education. However, in Denmark, graduates with a tertiary degree earn just 28% more, as of 2019 (OECD, 2019), while graduates of short-term tertiary programs make 5% more on average than those with bachelor’s degrees. These comparatively low percentages are due in part to Denmark’s average personal income tax rate of 56% compared to the OECD average, 42.6% (OECD, 2019). As a result, many Danish students chose to pursue short-term tertiary education, with 26% of students choosing short-term programs versus the OECD average of 17% (OECD, 2019). Societal norms Another reason Denmark has problems recruiting workers into the upper levels of education and the job market is the amount of time and the dedication required to gain access to and maintain these roles. According to experts on the Danish labor market, Danes take pride in their work but are not as attached to their job as are workers in other countries, leading to higher levels of turnover from position to position and slower vertical movement (T.B. Hougaard & M.M. Auken, remarks to Martindale Center, August 12, 2022). According to the OECD, a mere 1.1% of Danish employees work “long hours,” defined as greater than 50 hours each week, as opposed to the average of 10%. Moreover, Danish workers spend 15.7 hours a day on average sleeping, eating, socializing, exercising, and recreating in contrast to the OECD average of 15 hours a day, ranking them fourth of 41 countries. For reference, the average worker in the United States dedicates 14.6 hours to these activities, and 10.4% of employees’ working weeks are greater than 50 hours (OECD Better Life Index, 2023). Based on these statistics, Danish employees spend on average an extra hour per day on themselves and less time in the office in general, which means that average Danish workers are not using an elongated schedule to prove they are worthy of a new position nor do they necessarily seek out positions that require working longer hours if the financial incentive, as mentioned previously, is not substantive. Besides seeking the proper work-life balance, Danish students frequently take gap years after high school. These breaks are not necessarily a troublesome social phenomenon, because they help create more well-rounded citizens, but they deprive the labor market of qualified candidates for one or more years while these students finish their education (S.H. Knudsen, remarks to Martindale Center, August 16, 2022). Additionally, spending time outside of the country leads to students choosing to not return to study and work in Denmark (European Commission, 2023). Although these choices may be beneficial to students, they reduce the number of candidates to fill much-needed roles in Denmark. Vocational education systems Although many Danish students believe the education system is successful at reducing the pressure they face when choosing their educational and career path, this system is also creating problems for students and for the economy (S.H. Knudsen, remarks to Martindale Center, August 16, 2022). Specifically, critics emphasize how the intense structure of the vocational educational system, especially at a relatively early age, makes it difficult for students to transition back to school even if they wish (Ibsen & Thelen, 2020). Of those who enter a vocational track, as of 2017, just 3% pursued the Academic Preparation Program, which is best suited to prepare students for tertiary education (Cedefop, 2019). Such high participation in vocational programs and short-term tertiary programs below a bachelor’s degree, as mentioned previously, reduces the pool of candidates for long-term bachelor’s, master’s, and doctoral degrees. Furthermore, the average age of Danish students enrolling in these short-term programs is 30 versus the OECD average of 25, which is a concerning trend. International students In recent years, Denmark has been working to place limits on the number of international students it accepts into university programs, as 11% of students in Danish tertiary education are international compared to 6% on average across OECD countries. Studies have found that only a third of these students have a positive net contribution on the economy since they leave the country after graduating (International Consultants for Education and Fairs [ICEF], 2018). Furthermore, 83% of those international students are from European countries; thus, they enjoy the same access to free education in Denmark as Danish students. Across the rest of the EU, the percentage of international students from other European countries is only 42% (OECD, 2019). There are varied explanations, including ethnic and racial differences. Denmark struggles to attract international students from low-income, non-European countries as the cost of living and tuition is too expensive. In fact, 7% of international students in Denmark are from lower-income countries as opposed to 29% in the rest of the OECD countries (OECD, 2021). Consequently, Denmark is missing out on the wealth of knowledge
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