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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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