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Labor market reforms in Europe: towards more flexicure labor markets?

Author

Listed:
  • Werner Eichhorst

    () (IZA Institute of Labor Economics)

  • Paul Marx

    () (IZA Institute of Labor Economics
    University of Southern Denmark)

  • Caroline Wehner

    () (IZA Institute of Labor Economics
    Federal Institute for Vocational Education and Training (BIBB))

Abstract

Labor market segmentation refers to a salient divide between secure and insecure jobs and is related to problems in important areas, including macro-economic efficiency, workers’ well-being and repercussions for social cohesion. EU-28 countries have started a new wave of labor market reforms in the aftermath of the 2008/2009 crisis to tackle a number of issues, including labor market segmentation. This particularly concerns reforms in: (1) employment protection, i.e. dismissal protection and restrictions on fixed-term contracts; (2) unemployment benefit generosity and coverage; and (3) the intensity of active labor market policies. The paper provides an overview of reform patterns and tries to assess whether and to what extent these reforms have led to less dualized, more ‘flexicure’ labor markets in terms of dismissal protection, the provision of unemployment benefits and access to ALMPs. In particular, we will provide some evidence on potential changes in hirings on temporary contracts.

Suggested Citation

  • Werner Eichhorst & Paul Marx & Caroline Wehner, 2017. "Labor market reforms in Europe: towards more flexicure labor markets?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-17, December.
  • Handle: RePEc:spr:jlabrs:v:51:y:2017:i:1:d:10.1186_s12651-017-0231-7
    DOI: 10.1186/s12651-017-0231-7
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    References listed on IDEAS

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    1. repec:elg:eechap:14770_6 is not listed on IDEAS
    2. Rueda, David, 2005. "Insider–Outsider Politics in Industrialized Democracies: The Challenge to Social Democratic Parties," American Political Science Review, Cambridge University Press, vol. 99(1), pages 61-74, February.
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    5. Alessandro Turrini & Gabor Koltay & Fabiana Pierini & Clarisse Goffard & Aron Kiss, 2015. "A decade of labour market reforms in the EU: insights from the LABREF database," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-33, December.
    6. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
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    8. Kahn, Lawrence M., 2010. "Employment protection reforms, employment and the incidence of temporary jobs in Europe: 1996-2001," Labour Economics, Elsevier, vol. 17(1), pages 1-15, January.
    9. Paolo Sestito & Eliana Viviano, 2016. "Hiring incentives and/or firing cost reduction? Evaluating the impact of the 2015 policies on the Italian labour market," Questioni di Economia e Finanza (Occasional Papers) 325, Bank of Italy, Economic Research and International Relations Area.
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    Citations

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    Cited by:

    1. Matsue, Toyoki, 2019. "Employment fluctuations in a dynamic model with long-term and short-term contracts," MPRA Paper 97545, University Library of Munich, Germany.
    2. Eichhorst, Werner & Marx, Paul, 2019. "How Stable Is Labour Market Dualism? Reforms of Employment Protection in Nine European Countries," IZA Discussion Papers 12309, Institute of Labor Economics (IZA).
    3. Elert, Niklas & Henrekson, Magnus, 2020. "Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework," Working Paper Series 1345, Research Institute of Industrial Economics.
    4. Piotr Lewandowski & Jakub Sawulski & Kamil Stronski, 2016. "Labour market segmentation and the financial situation of the pension system in Poland," IBS Working Papers 10/2016, Instytut Badan Strukturalnych.
    5. Schrader, Klaus & Ulivelli, Marta, 2017. "Italy: A crisis country of tomorrow? Insights from the Italian labor market," Kiel Policy Brief 107, Kiel Institute for the World Economy (IfW).
    6. Camille Signoretto & Julie Valentin, 2019. "Individual dismissals for personal and economic reasons in French firms: One or two models?," European Journal of Law and Economics, Springer, vol. 48(2), pages 241-265, October.
    7. Gassmann, Franziska & Martorano, Bruno, 2019. "The future of work and its implications for social protection and the welfare state," MERIT Working Papers 2019-039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Joan Miquel Verd & Oriol Barranco & Mireia Bolíbar, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession: what are the determinants?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-20, December.

    More about this item

    Keywords

    Employment protection; Labor market reforms; Unemployment insurance; Flexicurity;

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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