68 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 41 | 2023 Slipping through the welfare cracks: Denmark’s homeless Alexis H. Soulias Denmark ranks within the top three happiest countries in the world due to the country’s high level of equality and extensive welfare system. Despite this overall ranking and coverage for free health care and education, there is a startling homeless population within Denmark. This article discusses how four main demographics (substance abusers, mentally ill, youth, and migrants) slip through the safety net and then poses opportunities for Denmark’s government to refocus policies to catch these people. Introduction Homelessness affects much more than the people without roofs over their heads. These extreme cases of exclusion from society severely impact an economy as fewer people are employed or paying taxes into the system (Homelessness Affects All of Us, 2023). At the same time, governmental expenses increase to provide health care and affordable housing. While some countries, including France, Scotland, and South Africa, have adapted their constitutions or passed legislation to include the right to housing, the fight for housing as a human right continues internationally. Every country faces homelessness due to causes like poverty; however, Denmark has an extensive social welfare system that provides health care, unemployment, disability, old-age, and survivorship benefits free of charge. Thus, homelessness mainly stems not from low income but rather from more complex social issues. In turn, policies need to focus beyond low income and unemployment to challenges like mental illness, substance abuse, early societal exclusion, and migration. Unfortunately, Denmark’s current policies fail to adequately address those four main pathways to homelessness. Homelessness as a problem Denmark is rightfully known for its comprehensive social welfare system, which protects citizens from economic poverty. Although effective for most of the population, marginalized groups suffering from mental health issues and substance abuse often slip through the safety net, resulting in a homeless population not always recognized, let alone currently addressed (Benjaminsen & Andrade, 2015). Danish residents receive free health care, often from general practitioners (GPs) as a first step. GPs can provide “conversational therapy” but are not required to offer more assistance to patients with mental health issues. Denmark’s public health-care systems are designed to cover a diagnosis within 30 days of a GP’s referral to a specialist and treatment within two months. Unfortunately, a Danish Depression Association survey of 500 patients revealed that 50% waited longer than two months to receive treatment and 20% waited more than six months, suggesting significant gaps in covering the full treatments citizens may need (Roney & Anziano). In addition, many immigrants who are not eligible for government safety net programs also find themselves without means of support and end up joining the homeless ranks. As a result, some are unable to cope and end up falling into the homeless category. Biennial counts since 2007 show a 33% rise in homelessness, to a high of 6635 people by 2019, about 0.13% of the population (Benjaminsen, 2018). Denmark’s 2019 statistics categorize eight types of homelessness: 732 sleeping rough (i.e., living on the streets, sleeping parks, or squatting in abandon buildings), 313 in emergency shelters, 2290 in homeless shelters/hostels, 191 using hotels due to homelessness, 1630 staying with friends/family, 121 in short-term housing, 72 homeless following prison release, 148 following hospital/treatment facility release, and 934 other/not specified. These categories capture the severity of a person’s situation and illustrate how ideal policies should target different forms of homelessness. The division between perception and reality— where citizens recognize the success of Denmark’s welfare system in economic welfare but do not realize the lack of coverage surrounding certain complex social issues—perpetuates the coverage gaps in the welfare system. The illusion that the system encapsulates everyone effectively reduces the salience of homelessness among most of the Danish population and should be addressed. To do so requires an understanding of the complexity of these issues.
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