Following ratification of the United Nations Convention on the Rights of the Child (UNCRC) in 1989, councils involving young people have become widespread, both in developed and developing countries. However, these councils are said to reflect the hierarchical nature of parliamentary and representative democracy, leading to tokenistic participation. Studies on the formal structures of youth participation have tended to focus on their failings and reveal little about structures and processes that might encourage youth participation. To address this gap, this paper examines three youth councils in Denmark and argues that the structures of these youth councils -- referred to as 'dialogic democracy' in this paper -- are what encourage effective participation, ensure the fairness of decision-making processes and develop young people's citizenship skills so that they can have agency in the arena of local policy. Crucially, dialogic democracy can be seen as a form of informal learning, with peer learning being central. Lessons can therefore be drawn for developing citizenship education programmes in other national contexts.