Proceedings from the ECFIN Workshop "The budgetary implications of structural reforms" - Brussels, 2 December 2005

form (cf above), ii) a labour market reform (cf above) iii) an education reform,
iv) an integration reform and v) a tax reform. The main focus of all reform
elements is to improve public finances by a strengthening of labour supply and
employment, although the various reform elements have been chosen also with
other concerns in mind. As noted this focus takes its outset in the fact that
there will be a downward trend in labour supply..

Figure 13: Labour supply - no reform

Source: Velfærdskommissionen (2005d)

The reform package has a substantial effect on labour supply and employ-
ment with an effect in 2040 of 252.000 equivalent to an increase by 10% in the
labour force relative to the "no reform" path. The contribution of the various
reform elements is shown in figure 14.

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