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

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.
Publication date: February 2007
ISBN: 9781451866001
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Labor , Labor market reform , Job and income security , labor market , unemployment rate , active labor , active labor market , Demographic Economics: Other , Unemployment: Models , Duration , Incidence , and Job Search , Multiple or Simultaneous Equation Models: Models with Panel Dat

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