Danish for All? Balancing Flexibility with Security: The Flexicurity Model
February 1, 2007
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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
Pages:
23
Volume:
2007
DOI:
Issue:
036
Series:
Working Paper No. 2007/036
Stock No:
WPIEA2007036
ISBN:
9781451866001
ISSN:
1018-5941
