Danish for All? Balancing Flexibility with Security: The Flexicurity Model

February 1, 2007

Preview Citation

Format: Chicago

Jianping Zhou. Danish for All? Balancing Flexibility with Security: The Flexicurity Model, (USA: International Monetary Fund, 2007) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The Danish flexicurity model has attracted attention among policymakers in Europe, because it suggests that a flexible labor market can coexist with a generous welfare system to achieve low unemployment. Using a panel of 19 countries over 1960-2002, the paper identifies the elements of the flexicurity model that may have contributed to the low unemployment rate. A theoretical model of dynamic policies is constructed to analyze whether the model can be emulated by other countries. Focusing on the financing aspect, the paper finds that effective implementation will depend on the initial unemployment level and budgetary situation of the country.

Subject: Active labor market policies, Labor, Labor market flexibility, Labor markets, Unemployment, Unemployment rate

Keywords: Active labor market policies, Europe, Job and income security, Labor market dynamics, Labor market flexibility, Labor market measure, Labor market policy, Labor market program, Labor market reform, Labor market regime, Labor market rigidity, Labor markets, Low-unemployment equilibrium, Policy variable, Unemployment, Unemployment rate, WP

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/036
Stock No:

WPIEA2007036
ISBN:

9781451866001
ISSN:

1018-5941

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