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Danish for All? Balancing Flexibility with Security

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  • Jian-Ping Zhou
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    Abstract

    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.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/36.

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    Length: 23
    Date of creation: 01 Feb 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/36

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    Related research

    Keywords: Unemployment; Labor market policy; Public finance; Economic models; labor market; unemployment rate; active labor; active labor market; labor market policies; employment; unemployment benefits; active labor market policies; unemployed; labor market programs; high unemployment; low unemployment; active labor market programs; labor market flexibility; unemployment rates; low unemployment rate; employment protection; labor market reforms; employment protection legislation; flexible labor market; structural unemployment; labor demand; job search; employment security; high unemployment rates; unemployment level; labour; labor markets; labour market; average wage; unemployed worker; unemployment equilibrium; equilibrium unemployment; job loss; initial unemployment; employment effect; labor market reform; high unemployment rate; unemployment benefit; rising unemployment; active labor market policy; jobs; rigid labor market; training programs; current job; flexibility of labor markets; active labor programs; labor force; employability; effect on employment; job security; unemployment compensation; flexible labor markets; labor market institutions; equilibrium unemployment rate; labor market rigidities; low employment; employment outlook; rate of unemployment; labor programs; collective bargaining; labor market dynamics; regular jobs; job offers; labor market performance; equilibrium unemployment rates; labor participation; labor supply; employment effects; labour market model; labor market model; adverse employment effects; labour market performance; job rotation; reemployment;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. André Sapir, 2006. "Globalisation and the reform of European social models," ULB Institutional Repository 2013/8112, ULB -- Universite Libre de Bruxelles.
    2. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March.
    3. Jian-Ping Zhou, 2006. "Reforming Employment Protection Legislation in France," IMF Working Papers 06/108, International Monetary Fund.
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    Cited by:
    1. Alessio J. G. Brown & Dennis Snower, 2009. "Incentives and Complementarities of Flexicurity," Kiel Working Papers 1526, Kiel Institute for the World Economy.

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