(Solution) - Denmark has high marginal tax rates and offers its citizens -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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Denmark has high marginal tax rates and offers its citizens generous unemployment benefits and other welfare payments. While the unemployment rate in Denmark is relatively low, the proportion of people who are not in the labor force is quite high. After accounting for factors like the average age of the population, what else do you think could explain this?