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Civic Attitudes and the Design of Labor Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?

Author

Listed:
  • Algan, Yann

    (Sciences Po, Paris)

  • Cahuc, Pierre

    (Sciences Po, Paris)

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, 2006. "Civic Attitudes and the Design of Labor Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?," IZA Discussion Papers 1928, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1928
    as

    References listed on IDEAS

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    More about this item

    Keywords

    civic attitudes; unemployment benefits; job protection;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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