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Figure3_Theory_Workfare.pptx application/vnd.openxmlformats-officedocument.presentationml.presentation 41.7 KB 09/07/2022 12:41:AM
Online_Appendix.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 52.6 KB 09/07/2022 12:38:AM
README.pdf application/pdf 264.2 KB 09/14/2022 02:57:AM
TABLE1_REPLICATION.zip application/zip 1.2 MB 09/07/2022 01:30:AM

Project Citation: 

Kreiner, Claus Thustrup, and Svarer, Michael. Code and Data for: “Danish Flexicurity: Rights and Duties.” Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-11-02. https://doi.org/10.3886/E174561V1

Project Description

Summary:  View help for Summary Denmark is one of the richest countries in the world and achieves this in combination with low inequality, low unemployment, and high income security. This performance is often attributed to the Danish labor market model characterized by what has become known as flexicurity. This essay describes and evaluates Danish flexicurity. The Danish experience shows that flexicurity in itself, i.e., flexible hiring and firing rules for firms combined with high income security for workers, is insufficient for successful outcomes. The flexicurity policy also needs to include comprehensive active labor market programs (ALMPs) with compulsory participation for recipients of unemployment compensation. Denmark spends more on active labor market programs than any other OECD country. We review theory showing how ALMPs can mitigate adverse selection and moral hazard problems associated with high income security and review empirical evidence on the effectiveness of ALMPs from the ongoing Danish policy evaluation, which includes a systematic use of randomized experiments. We also discuss the aptness of flexicurity to meet challenges from globalization, automation, and immigration and the trade-offs that the United States (or other countries) would face in adopting a flexicurity policy.

Scope of Project

Subject Terms:  View help for Subject Terms Labor Market Policy; Employment
JEL Classification:  View help for JEL Classification
      J08 Labor Economics Policies
Geographic Coverage:  View help for Geographic Coverage OECD countries
Time Period(s):  View help for Time Period(s) 1/1/2019 – 12/12/2019 (Data is from 2019 or latest available year, the latest being 2011 in one circumstance)
Collection Date(s):  View help for Collection Date(s) 4/9/2021 – 6/20/2022


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