Denmark is often termed a "flexicurity" country with lax employment protection legislation, generous unemployment insurance, and active labor market policies. This model is not a safeguard against business cycles, but has coped with the Great Recession and the Covid-19 pandemic, avoiding large...

The theoretical literature argues that labor markets outcomes are affected by real minimum wages. Real minimum wages, however, co-move with the business cycle; their correlation with labor market outcomes should therefore not be interpreted causally. We employ structural vector autoregression to...