However, Danish unemployment benefits are capped at a maximum of about $500 (Dkr 3,203) per week. This means that people with higher wages who become unemployed do not get anywhere near 90% of previously earned wages.
In other words, the system favors lower income individuals and thus strongly reflects the egalitarian norm in Danish society.
They know that if they do not participate in training and are available to take the jobs offered to them, their benefits will be immediately cut.
So the lesson from Denmark to neighboring Germany and all the other high-unemployment countries in the EU is this: A welfare state need not be dismantled to provide the right incentives for its beneficiaries — but it does need a big and credible stick.