Denmark is known to have the best welfare among all the countries. They had the longest unemployment insurance scheme of four years. However in June 2011, the Government decided to cut down the benefits to two years to help the country's financial situation. The reason behind the cut is studies shows that the longer a person goes without a job, the harder it is to find work. According to the graph in the Article, most of the people find jobs either in the first 3 months or toward the end of the benefit period, and in recent years, it is obvious that the percentage of people look for jobs at the end of the benefit period had increased largely. It seems like the Danes are not seeking all jobs they could get, but instead only look for jobs they would like to have.
I am honestly jealous of the unemployment benefit of Denmark, however at the same time I feel that their unemployment benefit system is a little unrealistic. If the US have had this system, I higly doubt that the US would be as strong as it is today. So if I am a citizen of Denmark, if I work, I'd have to pay tax and provide support for the unemployed people. If I don't work, I don't have to pay tax, plus I will receive money for the up coming four years. Of course the motivation of job seeking would be a lot lower, and many would not work. I wonder how much did the system affected the economic growth of the country? May have been large.
http://economix.blogs.nytimes.com/2010/08/16/why-denmark-is-shrinking-its-social-safety-net/
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