>To an extent isn’t this because these types of benefits aren’t affordable? The pension, extra vacation, etc wouldn’t be possible without the tax revenue raised from your friends who are working more hours.

They just told you that their still making 10-20% less than colleagues in the private sector - when all benefits are factored in. So obviously those benefits are basically as affordable as employing someone at private sector type wages . Of course they are in Denmark, so the benefits for the private sector are also a lot better than you get in the U.S - at least for non-FAANG (I believe for FAANG as well but haven't researched)