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Civic attitudes and the Design of Labor Market Institutions? Which Countries can Implement the Danish Flexicurity Model?

  • Algan, Yann
  • Cahuc, Pierre

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 CEPREMAP in its series CEPREMAP Working Papers (Docweb) with number 0517.

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Length: 44 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:cpm:docweb:0517
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