Nationaløkonomisk tidsskrift,
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Abstract: Greenland’s population and employment have historically been stable, but its growth performance is not impressive. Greenland enjoys rather stable fishing exports, and it receives two-thirds of its import capacity as a grant from Denmark. Non-fishing labor contributes to either private consumption or government consumption. The first is import- intensive and the second is labor-intensive. Greenland’s imports cannot exceed the sum of the grant and net fishing exports. A large public sector guarantees stable employment. A larger private-government consumption ratio is hypothesized as a way to increase welfare, and a lower real wage is the means by which this can be achieved.

Keywords: Greenland; Labor market; Current account; Denmark

JEL-codes: E19; E31

Language: English

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