EGGE EC s Expert Group on Gender and Employment

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1 1 EGGE EC s Expert Group on Gender and Employment Title: Evaluation Of The 2000 Danish National Action Plan For Employment. Country: Authors: Denmark Tracey Warren Copyright Disclaimer: This report was produced as part of the work of the European Commission s Expert Group on Gender and Employment (EGGE) and was funded by the European Commission. The European Commission has granted permission for this report to be published in this website. The opinions and views expressed in this report remain the responsibility of the authors and authors alone, and should not be taken to be representative of the views of the European Commission.

2 2 EXECUTIVE SUMMARY. Much of the NAP 2000 is dedicated to the issue of increasing the labour supply in Denmark. The action plan has been formulated in the context of ongoing debates over the consequences of an ageing population, a growing concern around the effects of increasing pension costs on an already highly taxed society and the need to increase activity rates. Unemployment rates are low so those groups who have tended to remain partially or wholly outside the labour force will have to be activated. The gender equality deficit is low in EU terms. Gender gaps in activity, employment and unemployment rates are relatively small. Women are much more likely to work part-time than men, although their part-time rates have fallen in recent decades and continued to drop slightly after Yet the labour market does remain highly segregated and reducing gender segregation is a central concern. In a clear effort at gender mainstreaming, a policy aim is to alter the traditionally gendered patterns of training placements, and to move women and men into genderimbalanced areas for their training. Every two years, all county/municipal administrations are to report their progress in solving segregation (horizontal and vertical) to the Ministry of the Interior. The gender wage gap is one of the lowest in Europe, but its reduction remains central to Danish policies. The prominence of this area reflects the fact that measuring and explaining the persistence of the wage gap is a core topic in Danish research. The NAP 2000 places greater stress on studies which aim to identify what influences wage determination by decomposing the wage gap. For example, what part can be put down to observed measures such as gendered differences in educational levels and what is due to unobserved measures such as discrimination? Good framework conditions have been established by the high degree of childcare and well remunerated maternity and parental leaves. They have helped create the current situation in which both women and men have high activity and employment rates. Childcare is still being extended and the aim is to abolish waiting lists. The NAP pays some attention to men s position with regard to child-care. In a section on parental leave schemes, figures are provided which show that men s use of paternity leave is rising and approaching the female rate of take-up. Yet women s share of parental leave remains constantly high, but there is no space given to whether this is seen as a problem and whether/how this imbalance might be solved. Women s domination of take-up has been highlighted by the Equal Status Council as a problem for achieving gender equality in Denmark. There is some evidence that there has been a slower wage growth for women who have children since the schemes began to be introduced. Providing more incentives for men to take the leave is a key issue, but not one the NAP mentions. There was consistency in the improvement of statistics between 1999 and NAP 1999 stated that a key objective was to improve the data collected to be able to better monitor equal opportunities and the Employment Guidelines. NAP 2000 provides more extensive statistics often disaggregated by gender, and also reports that part of the measures proposed in a new equal opportunities act are to focus upon monitoring the gender deficit, for example by better data collection. Despite the NAP 2000 s more comprehensive and clearer statistics, gender is not

3 3 necessarily commented upon in the text - even when gender differences are apparent. When gender is commented upon, then this is rarely in any detail. The NAP gives little attention to statistics which demonstrate important differences within the genders, by age for example. For example, even though the action plan pays a great deal of attention to policies to increase the activity rates of older persons, older people are non-gendered in the report. It would seem that new activation reforms could boost older women s activity rates and reduce the gender activity gap, but there is no discussion of any gendered impact they may have nor of whether gender was considered in the policy formulation. It is important that a multilayered approach to discrimination and disadvantage is developed, where gender divisions are recognised but so too are interactions with other types of disadvantage. There are substantial variations in women s (and men s) labour market opportunities related to their ethnicity, age, cohort, life-cycle position, educational level, and so forth. Much of the NAP is gender neutral, and talks in terms of inclusivity for all citizens. This focus on the individual in employment policies is avowedly gender mainstreamed, but there are clear signs that some new policies may well have a gendered impact. New agreements over freeing up working time in 2000 have initiated what could be marked changes in the Danish working time regime. These initiatives are expressed in gender neutral terms in the NAP and no mention is made of any possible gendered ramifications. More flexible working can help workers reconcile their home and working lives, but if opportunities for flexible working are taken disproportionately by women and are mostly available in lower quality jobs, then the traditional gendered division of labour could be reinforced and women s longer term employment prospects weakened. It would be beneficial to see the NAP considering the possibility of such gendered effects, if only to stress what measures are being taken to ensure that men too are becoming more flexible workers, that job quality is being prioritised and that monitoring arrangements have been put into place. Nor is gender examined in the outline of new tax reforms. The overall aims of the reforms are to reduce the tax burden and make the tax system more employment friendly especially for those with lower incomes. As women s average incomes are lower than men s, we would expect them to have benefited most from such a change, but the NAP does not discuss this as a possibility. Both the 1999 and 2000 NAPs are consistent in stressing that the measures being introduced were all targeted at individuals, and so women and men will have equal access. Gender is mainstreamed in Danish policies, and there are specifically gendered initiatives too - a twintracking approach. Yet, twin-tracking is largely absent in the 2000 NAP itself. As well as stressing the gender mainstreaming approach and asserting that the individual is central in policy making, it would be beneficial to also have gender pulled out within each of the Pillars 1-3. This needs to take place concurrent with a more critical awareness of gender in the NAP. It is not possible to identify the financial priority accorded to gender equality in the 2000 NAP. The size of budget devoted to Pillar 4 is not provided, for example, and NAP 1999 had only included some expenditures targeted on gender. Nor is it possible to see whether women and/or equal opportunities pressure groups were represented in formulating the NAP in 2000.

4 4 Good practices from Denmark include: devoting resources to try to reduce the gender segregated market and the related gender wage gap. the commitment to improving what are already extensive framework conditions. the new Act on equal opportunities for women and men which has been put before parliament (the Folketing) plans a Debate Forum and a new knowledge centre for equal opportunities. The priority areas identified for action include: addressing women s dominance of the parental leave scheme monitoring and evaluating working time developments. promoting twin-tracking in the NAP itself, alongside a more critical awareness of gender. promoting a multi-layered approach to discrimination and disadvantage where gender divisions are recognised but so too are interactions with other types of disadvantage.

5 EVALUATION OF THE 2000 DANISH NATIONAL ACTION PLAN FOR EMPLOYMENT. Tracey Warren June 2000 Department of Sociological Studies University of Sheffield Elmfield, Northumberland Road Sheffield, S10 2TU, UK

6 1 1. The gender equality deficit and the need for action 1.1 Context The Danish NAP 2000 is written in the context of ongoing debates over the consequences of an ageing population and the growing concern around the effects of increasing pension costs on an already highly taxed society. Since 1956, when the national old age pension (folkepension) was introduced, all Danish citizens have received a basic flat-rate, state-financed benefit from the age of Although the NAP does not make reference to it, the imminent reduction of the official age of retirement (to 65 from 67 for women and men in 2005), will also swell the numbers drawing their pension. With the twin aims of increasing employment rates to attain an inclusive labour market and maintaining a quality welfare state system - as outlined in the Lisbon 2000 summit - the Danish government plans to increase employment rates. This will also help avoid an income tax increase to fund the costly pension system. In early 2000, unemployment rates stood at around 4%, a 50% reduction since the mid 1990 s. So to increase employment when unemployment levels are so low, those groups who have tended to remain partially or wholly outside the labour force will have to be activated. The NAP identities groups to be targeted as the young unemployed, longterm unemployed adults, the weakest unemployed groups and young people entering the labour market for the first time. With new special holidays introduced in some parts of the private sector in the round of collective agreements in 2000, the resultant drop in working hours has intensified the need to increase the labour supply to maintain taxation revenue. Finally, the Danes will have a referendum over whether to participate fully in the euro in September 2000, and the target is to slow the growth of wages in preparation for the likelihood of convergence. The NAP has been formulated in the context of the above developments. The action plan outlines, in an introductory section on economic and employment trends, how Denmark set itself new economic targets in 1999, encapsulated in the Denmark 2005 strategy. These targets include reducing public debts, achieving a moderate growth in public sector employment, increasing the labour force (by around 80,000 between 1998 and 2005), stabilising unemployment, lowering the numbers on transfer incomes, reducing foreign debts and easing the tax burden. At no point is gender specifically pulled out in this introductory section, nor in the establishment of targets for The main action plans of the NAP are similarly non gendered, and are identified as phasing in general labour market reforms such as those to the tax system and the early retirement pay scheme improving the quality and effectiveness of activation measures modernising the labour market system simplifying and improving the effectiveness of the vocational training programme moving towards an inclusive labour market the reduction of those on disability pension. 1 In 1964 the Supplementary Labour Market Pension scheme (ATP) was added.

7 2 1.2 Gender equality deficit Employment and unemployment In a European context, gender gaps in activity and employment rates are low in Denmark. For example, in 1999 activity rates stood at 76% for women and 85% for men (Table 1). Employment rates were 71.6% and 81.2% respectively, and women s rates have increased slightly since 1997 (Table 1). Women are much more likely to work part-time than men, although their part-time rates have fallen in recent decades and continued to drop slightly after 1997 (Table 2). Women are also slightly more likely to be in temporary employment than men. Danish women have had higher unemployment levels than men, but now the difference is small compared with other EU countries. The NAP provides national figures to show that women s unemployment fell, relative to men, between 1997 and 1999 (to a gap of 1.7%). In 1999, women s rates were 9.6% compared with 4.9% for men. European Labour Force Survey (ELFS) figures show a similar drop (although rates are somewhat lower overall. Table 1). Gender segregation Although the gender gap in employment rates is relatively low in Denmark, the labour market is highly segregated. The ELFS shows that women are over-concentrated in health and social work and men in manufacturing industries and, overall, this segregation was stable 1997 to 1999 (Table 3). The NAP also stresses that women are over-concentrated in the state sector, and within certain occupations. In 38% of the occupational categories within this sector, men have over 80% of the jobs. In 13% of the categories, women have over 80% of the jobs. As a result, part of Council s Recommendation Two for Denmark cited in the NAP - is to reduce the strong occupational and sectoral segregation in the labour market. Gender wage gap The gender wage gap in Denmark is one of the lowest in Europe.?? 1999/2000 figures are coming from Ruth. Yet the gap does remain, connected to the marked gender segregation discussed above. In fact, the wage gap grew in the 1980 s, linked to an over-concentration of women in the public sector where relative wages were declining. If the focus is on gaps within occupational categories and wage scales, however, the NAP details that the difference in the public sector was modest in The gap remained modest even after a decentralised pay system was introduced with a more individualised determination of wages. Entrepreneurs Women represent 45% of the labour force and 30% of entrepreneurs (NAP 2000). The cited aim in the action plan is to increase women s contributions to the economy by increasing their entrepreneurship. Child-care Publicly provided child-care is extensive in Denmark. Municipal authorities provide child-carers (for children aged 6 months to 3 years), nurseries (6 months to 2 years), kindergarten (3-5years), integrated institutions (6 months to 6 years), and out of school care for older children. In 1999 coverage for children from 6 months to 17 years was 55% (up 1% since NAP 2000). Yet whilst the child-care provision is extensive and most municipal authorities offer a Child-care

8 3 guarantee, waiting lists persist. The NAP reports that waiting lists associated with child-care facilities and school clubs for those under 10 had been reduced to 7,000 by January The bulk of the costs of a child-care place are paid by taxes, the rest by parents. Around a third of children face a reduced child-care price because of their parents low incomes. The NAP2000 estimates child-care costs as a percentage of disposable income for some typical groups including the insured-unemployed, uninsured-unemployed and average employees. Typical costs are calculated separately for singles and couples. Tables show that costs are proportionally lower for non-insured unemployed persons (who will be on lower incomes). Overall, the NAP estimates that only a small proportion of (gender-neutral) parents are unable to take up a job due to childcare problems (discussed later). Parental leave There have been recent moves to make maternity leave more flexible, and to extend the opportunities for men to take leave. Fathers are entitled to take two weeks in the first fourteen weeks after the birth of their child, alongside the mother. In the next ten weeks of the possible leave period, the mother or the father can take leave (weeks 15-24). Since April 1998, fathers have been able to take their leave in weeks The maximum period of benefit for maternity leave is 32 weeks for the mother and four for the father (Hansen 1999). In % of mothers and 67% of fathers took leave (representing an increase of 9% for fathers since 1997). Following this leave, paid parental leave (extended in 1994) gives one parent an unconditional extra six months, and another six months conditional on securing agreement of their employer. Leave can be taken by either parent before the child reaches nine years of age, although the length is limited when children are older. The numbers on leave have grown since 1998, hitting 19,700 in January 2000 but the vast majority using the scheme are women. Women s share of parental leave has remained constant at 93%. Most of the leave (87%) is taken when children are between 6 months and two years. Access to training and lifelong learning In 1999, 23.9% of the labour force (employed and unemployed) had been involved in training activities in the 4 weeks before interview. Rates have been increasing for both women and men, and in 1999 women were more likely to have participated than men (27.3% compared with 20.9%. NAP 2000). 1.3 Need for action A core area needing continued action is the strongly gender segregated labour market. Policies and projects which have been set up to examine and tackle segregation are reported in the NAP, and will be discussed in this paper. Linked to the segregated market is the persistent gender wage gap. This has been a mainstay in Danish research for the past two decades, and the NAP reports ongoing and new measures to investigate it. Despite the fact that child-care provision is extensive in Denmark in a European context, problems still remain. A feature of the Danish policy agenda is to reduce child-care waiting lists, and the paper highlights some developments along these lines.

9 4 Given the female domination of the extensive parental leave scheme, the Danish Equal Status Council has expressed concern about the potential consequences of the scheme for gender equality. Parental leave is well remunerated in international terms but it is still known that one of the major reasons so few Danish fathers participate is cost - the wage loss is more for the family if the father takes leave. Men who do take parental leave are more likely to have partners who are highly educated and who have good incomes. In addition, as proportionately more women than men are employed in the public sector, if women take leave then the family will receive the additional and superior benefits of the public sector. Increasing male uptake of parental leave is necessary to promote equality in the labour market and the home. Moving towards a more flexible labour market is high on the political agenda in Denmark. Flexibility is prioritised in the 2000 NAP in terms of its facilitating an increase in the labour supply, boosting employment rates and facilitating a better reconciliation of family and working lives. New agreements over freeing up working time in 2000 have initiated what could be marked changes in the Danish working time regime, and they are outlined later in this paper. These initiatives are expressed in gender neutral terms in the NAP and no mention is made of any possible gendered ramifications. In terms of the NAP report itself, whilst gender mainstreaming is in evidence in certain areas, such as those dealing with attempts to reduce the gender segregated labour market, much of the remainder is gender neutral, and talks in terms of inclusivity for all citizens. This focus on the individual in employment policies is avowedly gender mainstreamed, but there are clear signs that some new policies may well have a gendered impact. In addition, there is very little attention given to possible divisions amongst the genders and whether key groups of women such as older women, lone mothers, immigrants - face any particular problems.

10 5 2 Assessing the implementation of gender mainstreaming 2.1 Monitoring and evaluation The NAP 2000 provides more comprehensive and clearer statistics than NAP Nine tables were provided in the text and twelve in the annex. Most were disaggregated by gender. Despite this, gender is not necessarily commented upon in the text - even when gender differences are apparent. When gender is commented upon, then this is rarely in any detail. Statistics are provided in a detailed section on activation measures (carrying on from the very detailed discussion in NAP 1999). Targets are set too, but not by gender. The target of the share of persons in education/training/active measures as a proportion of the unemployed was set at a minimum of 20%, and this target has been met in Denmark since In the first to the third quarter of 1999, activation stood at 44% and women had higher rates than men (and they increased after 1998). Women were also slightly more likely to find employment after activation (Table 4). In the discussion, these gendered results are referenced but little is made of them. Because of this, we could be left to assume that they were unintended, even though reducing women s unemployment rates is one of the Council s recommendations for Denmark. Indeed, there is a separate section at the end of the 2000 NAP on this recommendation. The 1999 NAP, however, highlighted that individual action plans for the unemployed (which take place before their activation) would promote gender equality. These action plans were to be geared to the needs of the unemployed person (and the labour market), and so could take into account women s and men s different backgrounds and conditions. NAP 2000 does not reflect back on these plans. The NAP 2000 also details specific activation targets to ensure that the young unemployed are offered training places by their sixth month of unemployment. No gendered targets are set but activation rates are presented by gender. These activation rules were phased in by the end of 1999, and similar rules for adults (but with activation by 12 months) are to be in place by the start of Both NAPs provided a gender breakdown of figures on women s and men s educational levels. Women s years in education were greater and their proportions in education were similar to men s (NAP 1999), but they were over-concentrated in general secondary education and underrepresented in vocational training (both NAPs). Given the emphasis in the NAPs on reducing gender segregation in the labour market elsewhere, very little attention was devoted to this issue of gender segregation within the educational system. Hence, even when statistics suggest clear gender differences, the NAP rarely discusses them in any depth. In addition, it gives little attention to statistics which demonstrate important differences within the genders. For example, tables in the NAP show that gendered gaps in activity rates are wide for those aged over 50 (see also Table 5). This age difference is not mentioned in the text, even though the action plan pays a great deal of attention to policies to increase the activity rates of older persons. In effect, older people are non-gendered in the NAP. The tables also show a wide gap in activity for younger people. Despite the NAP s detailed study of activation and training measures for young adults in the light of recent changes to the vocational education and training system (VEU-reform. See also Nielsen 1999), no mention is made of this gender division, of any potential gendered impacts of the new youth activation policies and of whether any extra framework conditions are required to boost young women s

11 6 activity. For example, with the long female-dominated parental leave, employers may discriminate against young women and prefer instead to hire (or promote) young men who, in this light, may appear to be a safer investment. A similar failure to give attention to divisions amongst women (and men) takes place in a section on unemployment. Tables show women and men s unemployment rates by age, and that the gender unemployment gap was very large for those aged in (Table 6). This age difference is not alluded to in the text. In addition, other groups of women who have the highest risks of unemployment are not identified. Women s levels of unemployment have been higher if they have dependent children in Denmark, especially if the children are young. And lone mothers have had very high unemployment rates and represent a group facing some of the highest degrees of exclusion from employment. The NAP does not pull out whether these groups of women are similarly seeing a fall in their unemployment or are being targeted in the aim to pull down women s overall unemployment levels. The NAP 1999 did mention one or two ESF job creation projects which have been specifically targeted in certain regions at, for example, lone mothers, women over 50 and long term unemployed women. Unfortunately, these are not picked up again in the 2000 NAP. So, although gender is included in most of the tables in NAP 2000, it is rarely given adequate attention in the text even when gender gaps are clear. Moving onto the tables which did not present gender. They were a minority but they included the following key topics: part-time working, and working time more generally typical child-care costs for parents, and numbers on the parental leave scheme numbers in the voluntary early retirement scheme numbers on a range of transfer incomes This omission of gender signals a number of problems. First, given well recognised gender differences in working time in Denmark and throughout much of Europe, there are clear gendered implications of new changes to boost a more flexible working time regime. Tables on who has been granted access to varying weekly hours and to part-time work in the 2000 collective agreements between the LO and DA 3 (see later) are not disaggregated by gender, and this is a significant omission. Second, the NAP also fails to identify whether child-care costs 4 have any gendered impact when, for example, women workers average incomes are lower than men s. The figures do show that typical costs account for a slightly higher proportion of the disposable income of a lone parent in employment than of a dual-employee couple. Because these average costs are not disaggregated by gender, we cannot establish whether they are more prohibitive for lone mothers, or not. They may not be. 2 Similar age and gender data were not available for 1999 in the NAP. 3 The so-called September agreement of 1899 between the LO (the Trade Union Federation) and the DA (the Employer's Organisation) lies at the heart of the industrial relations system. It established collective agreements on pay and working conditions in those industries covered by the LO and the DA. Although not all workers are in industries with unions affiliated to LO, their agreements exert a very strong influence on other sectors and so many other agreements are based on their lead. 4 Calculated as an average of disposable income - of the average unemployed and of workers on an annual wage of DKK 285,000.

12 7 Linked to the previous issue (and to child-care waiting lists), the NAP estimates that only a small proportion of parents are unable to take up a job due to childcare problems. In international terms, this proportion will be very small but any gender blind discussion of the parents who are most affected is problematic. Mothers are more than likely the ones who remain at home with the child if there is no suitable child-care place available and/or affordable. Figures are needed to explore exactly who these parents with the problems are. Third, whilst other gender-disaggregated tables confirm the marked gender differences in activity rates amongst older persons in Denmark, the table detailing the numbers participating in the voluntary early retirement scheme does not include gender and, likewise, the discussion does not consider that curbing the early retirement schemes will surely disproportionably hit women. Fourth, the NAP shows that the percentages on transfer incomes fell between 1998 and 1999 by 5.3% 5, but there is no information on who if anyone was most affected, women or men. Gender was most clearly at the centre of monitoring and evaluation on the topic of gender wage gaps. The prominence of this area reflects the fact that measuring and explaining the persistence of the wage gap is a core topic in Danish research. The NAP 2000 places greater stress on studies which aim to identify what influences wage determination. 2.2 Initiatives to promote gender equality This section will begin by pulling out the main policies which the NAP sees as promoting equality between women and men. Then it goes on to initiatives which have the potential for proactive gendered outcomes, even though the NAP does not identify them as such. Then finally a key initiative which could be proactive but may reinforce and possibly exacerbate differences between women and men is examined Proactive gendered initiatives in the NAP Female entrepreneurs: Pillar 2 A cited aim in the NAP is to increase women s contributions to the economy by increasing their entrepreneurship. This aim was added to the NAPs in NAP 1999 stated that a task of the Business Promotion Board is to analyse the advantages and problems in setting up in business, for women in particular. Statistics are to be kept on women s experiences and some studies have already been carried out including Conditions, barriers and potential for female entrepreneurs and Banks relations with female entrepreneurs. Female entrepreneurs: now and in the future is due to report in Summer The Danish Agency for Trade and Industry carried out a survey of business owners in 1999, examining reasons for setting up on your own. Women were more likely than men to cite the attraction of working time organisation. Barriers to setting up a business were identified as dealing with taxes and doing the accounts. Most of the respondents had no formal education or vocational background, and women overall displayed fewer of the characteristics which have been found to have a positive impact on the survival of the business. The traditional policy strategy regarding entrepreneurship had been to focus on giving support to new and small enterprises (e.g. via an allowance for the unemployed). Now, better framework 5 Those on unemployment fell by 6%, on leave by 15%, social benefits by 9% and early retirement by 1%.

13 8 conditions have been set up, reflecting the gender mainstreaming principle. A package of new initiatives to increase the start-ups includes an emphasis on stable economic growth, low inflation, better counselling, easier access to capital, a loan guarantee scheme and co-financing of innovation environments. The aim is to simplify legislation and administration and a project has been established to improve the administrative competences of SME s. As counselling has been found to be associated with increased survival of new businesses, in 1999 DKK 371 million was spent on a new programme. This programme established a one-stop shop, and provided pre set-up counselling to 6,000 people (hitting the original target). One possible limitation of the gender mainstreaming of entrepreneurs under Pillar 2 is that helping women to set up their own businesses could well strengthen the degree of horizontal gender segregation in the labour market, at the same time that training and other policies (under Pillar 4) are working to lessen it. The NAP makes no reference to this possible contradiction. Child-care and Parental leave: Pillar 4 Framework conditions for families and children are already well established, but their continued expansion is still central to Danish policies. Childcare is being extended and the aim is to abolish waiting lists. At the same time, costs may increase slightly. Municipal authorities who operate the Child care guarantee can raise the costs paid by parents by 1% (each year 2000 to 2002). There have been recent moves to make maternity leave more flexible, and to extend the opportunities for men to take leave. Fathers are entitled to take two weeks in the first fourteen weeks after the birth of their child, alongside the mother. In the next ten weeks of the possible leave period, the mother or the father can take leave (weeks 15-24). Since April 1998, fathers have been able to take their leave in weeks On the whole though, they tend to use the first two weeks scheme, with only 3% using the and 17% the week scheme. Take up of the latter scheme was boosted when the 1999 collective agreement between LO and DA provided public employees with full pay. Gender segregation: Pillar 4 Reducing gender segregation in the labour market is a central Danish concern. For example, the Ministry of Labour ran three conferences on the segregated labour market in Autumn In a clear effort at gender mainstreaming, the NAP specifies that changing gendered patterns in placement activities is a priority. The policy aim is to alter the traditionally gendered patterns of placements, and to move women and men into gender-imbalanced areas for their training. This fits in with the wider aim to reduce the segregation in the labour market by providing women and men with skills and experiences in non-traditional areas. The Public Employment Service will now operate a so-called gender neutral basic registration, only noting general qualifications, competences and experience (competences accumulated in peoples spare time too), but not their gender. Monitoring has been set up to evaluate the effectiveness of the new gender neutral project. In addition, a localised two and a half year project (in Funen) has been established to develop instruments to dismantle gender barriers in the labour market and firms, and to facilitate the integration of equal opportunities into training. The NAP1999 pulled out more explicitly that there has been a deliberate shift in policies to reduce gender segregation on the labour market away from placing women into men s jobs, and into pursuing three types of projects in the 1990 s - focusing on women, on men and mixed schemes.

14 9 Gender wage gap: Pillar 4 The gender wage gap continues to be a core area of research activity. This activity was encouraged by the decentralisation of public sector wage bargaining which held the potential for widening the earnings gap between women and men. The NAP reports that the gap in the public sector in 1999 had been modest - if the focus is on differences within occupational categories and wage scales, and it remained modest even after decentralisation. Initiatives to reduce the wage gap have focused upon new projects examining equal pay statistics. These take into account the elements of wage formation that are of importance for identifying wage differences including seniority, occupational sector, and so on (NAP 1999) Proactive initiatives which are presented gender neutrally in the NAP There are a number of initiatives which would appear to have the potential for a strongly gendered impact, but in which gender is not pulled out in the NAP. For example, gender is not examined in the NAP s outline of new tax reforms in Denmark. The overall aim of the reforms are to reduce the tax burden and make the tax system more employment friendly especially, as the NAP states, for those with lower incomes (See NAP 1999). Reductions in marginal taxes have been phased in since the Whitsun package of June The phasing in period carries on until 2002, and by then those on the lowest incomes will have seen the biggest reductions (see Table 7). As women s average incomes are lower than men s, we would expect them to have benefited most from such a change, but no gender information is provided to permit this assessment and the action plan does not discuss this as a possibility. It does not consider whether the tax changes may produce a new incentive to raise women s activity rates even closer to those of men. Gender is not pulled out in the NAP discussion of various labour market reforms targeted at older workers, and specifically aiming to curb trends towards early retirement: The Transitional Allowance Scheme was closed to new entrants in 1996 (NAP 1999). This scheme had allowed the long term unemployed aged to take very early retirement, and was likely to have been commonly utilised by women. The Voluntary Early Retirement Pay Scheme was reformed in July Now the express aim is to increase the labour supply by increasing the activity rates of older workers via the provision of incentives to work. From January 2000, unemployed people aged sixty or more are to be activated by their sixth month of unemployment (NAP 1999). Because those aged over 48 find it harder to get out from unemployment, so-called service jobs have been introduced in the public sector. The state grants a subsidy to the employer and the older employee receives the ordinary wage for the job. Even though older women s inactivity and unemployment rates are higher than men s (and women in general have higher activation rates), there is still no discussion of gender in the sections of the NAP which deal with the above initiatives. It would seem that these reforms could boost older women s activity rates, reduce the gender activity gap, further women s accumulation of pension credits and so, in one sense, promote gender equality amongst older people. Some of the initiatives are so new that there is little information available on their outcomes but, importantly, there is no discussion of any gendered impact they may have nor of whether gender was considered in the policy formulation.

15 10 Another activation initiative which could well disproportionably affect women, but one in which, again, no mention is made of gender in the NAP, concerns a project to evaluate the effects of activation on the unemployed. The project has shown that activation has increased the motivation to find a job of the unemployed as a whole - more now find work before their activation is due. Activation has also increased the skills and job chances of the activated. As a result, it is reported that the size of the so-called marginal group (those who were unemployed, on activation schemes, or in the Public Employment Service for 80% of the time in the last three years) has fallen since 1993 by 50%. No gender figures are given on the proportion of the marginal group who are female, nor on whether the fall is gendered in any way. This is even though the earlier tables on activation rates suggest that women fare better than men. The NAP states an aim to carry on reducing the marginal group in Denmark, but no gender target is given 6. Nor is there mention of gender in the outline of a home services scheme which has been set up to help improve the employment of the unskilled and to reduce the informal (so-called black ) economy. This could be classified as proactive as it aims to regularise the informal economy and provide better and higher quality employment opportunities. The scheme envisages that what were previously DIY jobs will now become paid home services jobs. The services are intended to help busy families and the elderly. Fifty percent of costs are met by the state and DKK 607 million was spent in 1999, and DKK 450 million in This has led to an increase in the proportion of households using the scheme from 12% to 14.3% 1998 to Monitoring and evaluation of wages and employment conditions are taking place. Yet there is no mention of the gender of the workers who are providing the services, nor of any gender issues which might be targeted in the monitoring process. Indeed, it is not even stated whether gender will be taken into account in the monitoring at all, but the gender mainstreaming of data collection in Denmark should no doubt ensure that this does occur. Finally, new schemes to improve IT awareness and competences across the board in Danish educational and workplace establishments could benefit women, who lag some way behind men. IT is pulled out in the NAP as central in the plan to increase job quality, not just quantity, and enhance peoples abilities to enter skilled jobs. IT is now compulsory in all training programmes for youths and adults. High quality training places are being initiated to match the need for skilled labour to the needs of youth for training places, and adults with low qualifications are to be given a better foothold with IT. All teachers in the education system are to be offered IT training (25% of basic school teachers are expected to take up the offer in 2000). Women s share of IT educational programmes has been lower than men s and the NAP states, somewhat vaguely, that efforts will be made to increase women s share on IT diplomas, bachelors and masters. Elsewhere in the report, some mention is made of women s needs, and the possibility of part-time training, but these issues are not pulled out. There is instead a gender blind focus on so-called weak groups who have few qualifications, and there is a statement that policies are to be implemented to provide individualised training activities targeted to the needs 6 Gender is not specified in a whole range of other activation measures. For example, from January 2000, work practices were introduced to increase flexibility in the private sector. The PES (Public Employment Service) gives the unemployed an offer to stay in an enterprise for 2-4 weeks to see if they are adequately qualified and stand a chance of obtaining employment there, or whether they need more training. They are paid a practice work allowance equivalent to the unemployment benefit that they would be due. In addition, the Finance Act 2000 initiated an agreement to increase the incentives for flex jobs (on special terms for those with reduced capacities to work, supported by public subsidies). The right to unemployment allowance between flex jobs has also been granted.

16 11 of the weak groups. The NAP does not pull out the gender of these weak groups even though it is clear that the new strategy could potentially reduce gender differences in IT competences, and have a longer term impact on reducing the gender segregated market Initiatives presented gender neutrally in the NAP but which may produce conflicting gendered outcomes Working time: under Pillar 3 The gender-neutral policies reported above may well have a positive impact on gender equality, for example by raising women s activity rates and IT competences closer to men s. A new initiative on working time is as, if not more, likely to have far reaching and markedly gendered outcomes. However, the outcomes could be conflicting, and so require very close monitoring. The new working time changes could better facilitate the reconciliation of home and working life but (or at the same time) they may hold the potential for intensifying the gendered division of labour. There have been significant new moves in Denmark in 2000 to ensure a more flexible labour market and more flexible working time. These are highlighted in the NAP 2000 as part of the Danish plan to enlarge the labour supply. The NAP also states, after this, that working time changes are important too in terms of the support they can give to improving labour market attachment (expressed gender neutrally in the report) and achieving a better work/family life combination. Working time is mainly regulated via collective agreements in Denmark 8. In the past, most agreements have actively opposed the establishment of non-traditional working time arrangements (such as part-time). This was the case in the traditional manufacturing industries in particular. Most unions prohibited jobs under ten to fifteen hours a week as this meant that the employees were under the threshold for numerous social and employment rights. In the LO and DA collective bargaining round of March 2000 (which led to Collective Agreement 2000, binding for four years), the four main topics negotiated were the modernisation of the labour market, access to part-time working, lifelong learning and the terms of employment for those with a reduced capacity for work. In terms of working time and labour market modernisation, local arrangements of working time are now possible. Locally agreed variations in working time over a certain reference period can occur, as long as the average week remains at 37 hours (established in the 1987 agreement). Figures show that of employees who are covered by the agreement, 70% now have access to a reference period for working time of 12 months or more. Furthermore, free access to part-time working now exists in 50% of the fields covered by the agreement (rising from 40% before). Figures are provided on the proportions of employees who are now covered by agreements which enable them to reorganise working time at the level of the enterprise. Unfortunately, the degree to which these working time developments have affected female or male-dominated sectors is not given, and the gendered implications of the changes are not discussed. Given that it is known that Danish women have stressed their need for a more flexible labour market to help them balance home and work (the NAP points out that this is one of the attractions for women of setting up 7 In the wider discussion of adult vocational education in the NAP, a reform is briefly mentioned which aims to provide high quality relevant training for all - irrespective of age, gender, education. 8 Legislation which exists around working time has been targeted at those employees not covered by collective agreements (such as the salaried. NAP 1999).

17 12 their own business for example), this gender-blind approach is neglecting what are potentially marked gendered ramifications of the new initiatives. More flexible working can help workers reconcile their home and working lives, but if opportunities for flexible working are a) taken disproportionately by women and b) available in lower quality jobs, then the traditional gendered division of labour could be reinforced and women s longer term employment prospects weakened. It would be beneficial to see the NAP considering the possibility of such gendered effects, if only to stress what measures are being taken to ensure that men too are becoming more flexible workers, that job quality is being prioritised and that monitoring arrangements have been put into place. Collective agreements in the public sector also plan modernisation and flexibilisation with regard to working time and here the NAP does state that statistics and qualitative data are planned to monitor the effects of the decentralisation of working time. This is necessary because, as the NAP states, non-traditional forms of employment are not offered the same protection by labour legislation and agreements as more traditional employment. As a result, the government is reported to be considering initiating a study on the scope and implications of non-traditional working. Unfortunately, again gender is not mentioned specifically in any of this in the NAP - not at the policy development stage nor in proposals for monitoring. 2.3 Coherence and consistency and the gender mainstreaming approach Both NAPs are consistent in stressing that the measures being introduced were all targeted at individuals and so women and men will have equal access. Both also highlight that, in addition, special measures are to be targeted at high risks groups. For example, those with greatest risks of unemployment such as minority ethnic groups and others are to be helped with special initiatives (NAP 1999). Gender is not pulled out to any extent in the introductory sections on the economic and employment contexts in the NAPs, and in the general targets for increasing the labour supply. In both the 1999 and 2000 NAPs, there was little evidence of gender in discussions of Pillar 1. Some gendered figures were available on women s activation rates, but gender was not emphasised in any way. In Pillar 2, gender was discussed via the topic of female entrepreneurs. NAP 1999 reported that there was not enough detail known on the topic and that analysis was first required before initiatives could be adopted. NAP 2000 gave more space to the issue and also summarised the results which had been obtained so far. Gender was not mentioned under Pillar 3 in either NAP. There was consistency in the improvement of statistics between 1999 and Statistics were largely absent from NAP It stated that a key objective was to improve the data collected to be able to better monitor equal opportunities and Employment Guidelines. NAP 2000 takes this objective further. It provides more extensive statistics often disaggregated by gender, and also reports that part of the measures proposed in a new equal opportunities act (see later) are to focus upon monitoring the gender deficit, for example by better data collection.

18 13 One possible area of conflict in the NAP 2000 is seen in, on the one hand, the new moves towards flexible working under Pillar 3 which were presented gender-neutrally and, on the other hand, evidence that women are more likely to express the need for working time flexibility to help them reconcile home and working. The impact of possible future variations for women and men are not anticipated in the plan. Another conflict may lie in the gender mainstreaming avowedly behind measures to help women set up their own business under Pillar 2, and wider initiatives to reduce horizontal segregation in the labour market which are emphasised under Pillar 4. There was no mention under Pillar 2 of the sectors women choose to set up in, nor whether this could be detrimental to the activities operating under Pillar 4, and vice versa.