Flexicurity

Abstract: Unemployment is at a low and stable level in Denmark. This achievement is often attributed to the so-called flexicurity model combining flexible hiring and firing rules for employers with income security for employees. Whatever virtues this model may have, a low and stable unemployment rate is not automatically among them since the basic flexicurity properties were also in place during the 1970s and 1980s where high and persistent unemployment was prevalent. Labour market performance has changed due to a series of reforms during the 1990s, the main thrust of which were a shift from a passive focus of labour market policies to a more active focus on job search and employment. The policy tightened eligibility for unemployment benefits and their duration as well as introduced workfare elements into unemployment insurance and social policies in general. Thereby policy makers attempted to strengthen the incentive structure without taking resort to general benefit reductions. We argue that the workfare policies have played an important role running primarily via motivation/threat and wage effects. However, active labour market policies are resource demanding, and although the workfare reforms have improved cost effectiveness, there is still an issue as to whether the resources going into active labour market policies are used efficiently.

Abstract: This paper discusses the recently coined concept of flexicurity. It is outlined how this concept gained importance in legislative and labour market policy reform in the Netherlands, linking a number of previously separated areas of policy-making such as flexibilization and deregulation of the labour market on the one hand and social security and the concern for the negative consequences of flexible employment on the other hand. Second, the paper explores the relevance and significance of the concept to a theory of transitional labour markets. It is suggested that 'flexicurity', as a trade off or new balance between labour market flexibility and increased security for workers (especially those in precarious situations) might define more precisely and accurately the legal, social and perhaps even psychological conditions under which labour markets can become truly transitional, i.e. triggering, fostering and safeguarding transitions between employment and other distinct social systems such as private households, education, retirement and unemployment.

Abstract: Unemployment is at a low and stable level in Denmark. This achievement is often attributed to the so-called flexicurity model combining flexible hiring and firing rules for employers with income security for employees. Whatever virtues this model may have, a low and stable unemployment rate is not automatically among them since the basic flexicurity properties were also in place during the 1970s and 1980s where high and persistent unemployment was prevalent. Labour market performance has changed due to a series of reforms during the 1990s, the main thrust of which were a shift from a passive focus of labour market policies to a more active focus on job search and employment. The policy tightened eligibility for unemployment benefits and their duration as well as introduced workfare elements into unemployment insurance and social policies in general. Thereby policy makers attempted to strengthen the incentive structure without taking resort to general benefit reductions. We argue that the workfare policies have played an important role running primarily via motivation/threat and wage effects. However, active labour market policies are resource demanding, and although the workfare reforms have improved cost effectiveness, there is still an issue as to whether the resources going into active labour market policies are used efficiently.

Abstract: The notion of ‘flexicurity’ has recently become a buzzword in European labour market reform. It promises to deliver a magic formula to overcome the tensions between labour market flexibility on the one hand and social security on the other hand by offering ‘the best of both worlds’. This article gives a state-of-the-art review on flexicurity. The development of the concept is set against the background of changed economic circumstances in the last two decades. The components of flexicurity are presented in more detail, followed by a review of ‘real worlds of flexicurity’ in selected European countries, with Denmark and the Netherlands as the most prominent examples. The third section considers the transferability of flexicurity policies across borders. Finally, we concentrate on collective actors involved in promoting the idea of flexicurity at European, supra-national and national levels. We conclude with a discussion of some tensions within and criticisms of the concept.