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Civic attitudes and the Design of Labor 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.

Suggested Citation

  • Algan, Yann & Cahuc, Pierre, 2005. "Civic attitudes and the Design of Labor Market Institutions? Which Countries can Implement the Danish Flexicurity Model?," CEPREMAP Working Papers (Docweb) 0517, CEPREMAP.
    • Handle: RePEc:cpm:docweb:0517
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    More about this item

    Keywords

    Political economy; Labor market performances; Cultural economics;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • D19 - Microeconomics - - Household Behavior - - - Other

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