Can the Danish model of “flexicurity” be a matrix for the reform of European labour markets? (original) (raw)
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Examining the Danish flexicurity labour market concept
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Objective of this paper is to analyse the most recent changes of the interplay between the flexibility of the employment relationship on the one hand, and labour market and social policy, on the other. This article examines the new policy concept of "flexicurity" in view of the emerging flexibility-security approach that the European Union, national governments, sector of industry, individual companies and workers are currently facing. The flexicurity approach provides important answers to the question of how to meet modern labour market challenges and at the same time improve security. The special interest is concentrated on the so-called "golden triangle" of the Danish labour market successful flexicurity model.
The Danish flexicurity labour market policy concept
2009
Objective of this paper is to analyse the most recent changes of the interplay between the flexibility of the employment relationship on the one hand, and labour market and social policy, on the other. This article examines the new policy concept of "flexicurity" in view of the emerging flexibility-security approach that the European Union, national governments, sector of industry, individual companies and workers are currently facing. The flexicurity approach provides important answers to the question of how to meet modern labour market challenges and at the same time improve security. The special interest is concentrated on the so-called "golden triangle" of the Danish labour market successful flexicurity model.
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The Danish labor market system is often referred to as the Danish Model. It is an example of flexicurity, a term that combines the words security and flexibility. This system boasts of more than 100 years of history, and it is one of the preconditions for the rich Danish welfare state, which has a generally high income based on rather small but adaptable firms. The basis for this system is the collective agreements established through negotiation with a "balance of compromise" accepted by both employers and employees. The state normally does not interfere in the negotiations. The well-functioning Danish Model has many similarities with the systems in the other Nordic countries. The word flexicurity was first used in the Netherlands J. Burchardt (*) Museum Vestfyn,
Flexicurity - A European Approach to Labour Market Policy
2008
Although linguistically somewhat strange, "fl exicurity", the combination of labour market fl exibility and security for employees, has become a much praised cornerstone of European labour market policies. Obviously, in an environment with rapid technical progress and frequently changing market conditions, employers need to manage their labour force fl exibly. In order to achieve this fl exibility without creating an unbearable situation for employees, security is the second pillar of the concept. Security refers, however, to "employability" rather than safety from dismissal. As such, the concept looks like an innovative European way of consolidating economic and social interests, although some argue that much fl exibility is gained while the security aspect is being neglected. The concept has been successfully adopted in some European countries, notably Denmark and the Netherlands. However, each country has to fi nd its own concept of "fl exicurity" using a distinct combination of instruments that fi t the national institutional, social and civic context. 11 All fi gures presented in this section are based on Eurostat calculations.
Benchmarking EU countries against Danish flexicurity model
2008
The key issue of renewed Lisbon strategy is the urgent need to increase competitiveness of European economy. One potential way to achieve this is increased labour market flexibility, which should be combined with workers’ social protection. The balance between labour market flexibility and social security is labelled with new concept of flexicurity. In this paper we present short overview of different interpretation of the concept. Usually Danish or Dutch models are referred in literature as benchmark models for flexicurity. In our analyses we use Danish model as benchmark for other EU member states. The purpose of this paper is to find out what is the current state in implementation of flexicurity policies in EU member states. We use factor analysis in order to map different aspects of Danish “golden triangle” and see how EU25 member states relate to this triangle. Three factors identified in model are labour market adaptability/flexibility, social security and social cohesion. Cou...
Denmark's Flexicurity: An Institutional Analysis of Denmark and the United States
This inquiry details the "Flexicurity" system in Denmark. The employment and welfare benefits are considered from the employers and employees perspective. The role of the state is described in detail. Historical institutional differences between liberal market economies and coordinated market economies are analyzed. This essay seeks to establish that the "Flexicurity" system in a liberal coordinated market economy is a noteworthy form of industrial organization. It is demonstrated that the system is a first class way of enhancing human capital formation while engendering a social safety net that is far more sophisticated than with social services in the United States. JEL Classifications: I3, J5, J8, L52, O23, O57 Social welfare, human capital, employment, comparative systems, industrial organization, vocational training