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Civic Attitudes and the Design of Labour Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?

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  • Algan, Yann
  • Cahuc, Pierre

Abstract

We argue that the efficiency of the Danish flexicurity Model, which combines high unemployment benefits with low job protection and high participation rate, relies on strong public-spiritedness. We also argue that Continental and Mediterranean European countries are unlikely to be able to implement the Danish Model because the lack of public-spiritedness of their citizens raises moral hazard issues which hinder the implementation of efficient public unemployment insurance.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5489.

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Date of creation: Feb 2006
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Handle: RePEc:cpr:ceprdp:5489

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Keywords: civic attitudes; job protection; unemployment benefits;

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Citations

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Cited by:
  1. Tito Boeri, 2010. "Immigration to the Land of Redistribution," LEQS – LSE 'Europe in Question' Discussion Paper Series 05, European Institute, LSE.
  2. Kjell Erik Lommerud & Odd Rune Straume, 2012. "Employment Protection Versus Flexicurity: On Technology Adoption in Unionised Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 177-199, 03.
  3. Saint-Paul, Gilles, 2007. "Alternative Strategies for Fighting Unemployment: Lessons from the European Experience," IDEI Working Papers 446, Institut d'Économie Industrielle (IDEI), Toulouse.
  4. Boeri, Tito & Macis, Mario, 2010. "Do unemployment benefits promote or hinder job reallocation?," Journal of Development Economics, Elsevier, vol. 93(1), pages 109-125, September.
  5. Friedrich Heinemann, 2009. "Economic Crisis and Morale," Working Papers CEB 09-046.RS, ULB -- Universite Libre de Bruxelles.
  6. Salvatori, Andrea, 2010. "Labour contract regulations and workers' wellbeing: International longitudinal evidence," Labour Economics, Elsevier, vol. 17(4), pages 667-678, August.
  7. Heinemann, Friedrich, 2007. "Is the Welfare State Self-destructive? A Study of Government Benefit Morale," ZEW Discussion Papers 07-029, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Bertola, Giuseppe, 2007. "Finance and Welfare States in Globalizing Markets," CEPR Discussion Papers 6480, C.E.P.R. Discussion Papers.
  9. ANT Bozkaya & William R. Kerr, 2009. "Labor Regulations and European Private Equity," Working Papers CEB 09-055.RS, ULB -- Universite Libre de Bruxelles.
  10. Dalit Contini & Matteo Richiardi, 2009. "Welfare stigma with decreasing employability," LABORatorio R. Revelli Working Papers Series 90, LABORatorio R. Revelli, Centre for Employment Studies.
  11. Alessio J. G. Brown & Dennis Snower, 2009. "Incentives and Complementarities of Flexicurity," Kiel Working Papers 1526, Kiel Institute for the World Economy.
  12. Witztum, Amos, 2008. "Social attitudes and re-distributive policies," The Journal of Socio-Economics, Elsevier, vol. 37(4), pages 1597-1623, August.
  13. FitzGerald, John & Barrett, Alan & Bergin, Adele, 2007. "Economic Assessment of the Euro Area: Forecasts and Policy Analysis, Autumn Report 2007," Research Series, Economic and Social Research Institute (ESRI), number sustat24.
  14. Wolfgang Ochel, 2005. "Concepts and Measurement of Labour Market Institutions," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 3(4), pages 40-55, 01.

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