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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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  • Pierre Cahuc

    (Department of Economics, Ecole Polytechnique)

  • Yann Algan

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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Bibliographic Info

Paper provided by Sciences Po in its series Sciences Po publications with number 5489.

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Date of creation: Feb 2006
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Handle: RePEc:spo:wpmain:info:hdl:2441/8811

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Keywords: job protection; civic attitudes; unemployment benefits;

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