Danish Flexicurity Model

Daniel Hinšt – Centre for Public Policy and Economic Analysis (CEA), Vice President

Master thesis – Advanced Master of European Studies (2010), Faculty of Political Science in Zagreb

Daniel Hinšt completed Advanced Master of European Studies and graduated Political Science at the University of Zagreb. His study specializations are public policy and public management, as well as international relations and diplomacy, with additional research interests in administrative and governance reform, European economic integration, comparative politics, geopolitics, national security and intelligence services. His recent policy analysis and research is mostly focused on designing methodologically based policy solutions for institutional reforms, and on detecting disinformation that pose geopolitical risks to values of the individual liberty and transatlantic institutions (EU-NATO).

Introduction

This Master thesis examines main features of Danish flexicurity model, compares it with other European socioeconomic models and brings perspectives for flexicurity policies on the European level. The author puts up a hypothesis that flexicurity model can represent a comprehensive labour market reform in European countries, based on a broad consensus, which combines high level of labour market flexibility, adequate income security for the unemployed and active labour market policies directed towards increased employability. The European Union has a strategic goal to increase competitiveness and employment. In this context, flexicurity policies have importance for achieving this goal. Although flexicurity model is the original characteristic of Nordic countries, mainly Denmark and the Netherlands, flexicurity policies can also have a long-term perspective in other European countries, while policy implementation will depend on specific circumstances in each country. Therefore, Danish flexicurity model can serve as a benchmark for implementing long-term labour market policy goals in other EU Member States. Many European countries have been facing challenges of high unemployment and decreased or stagnant competitiveness. Moreover, the level of employment is not sufficient for reaching faster economic growth and increasing competitiveness. Various structural obstacles to economic freedoms exist for a long time, causing undesirable effects. Various labour market rigidities often put risks on the business sector, preventing free and maximal opportunities for investments in new jobs. Reaching high competitiveness is possible in dynamic economies where free market determines where, what, when and how the people will work, instead of government and/or trade unions’ interventions. The flexicurity model is a comprehensive model which reaches a compromise. This means that the role of the government is not in regulating the labour market, than in providing adequate income security for the unemployed and in active measures which would increase their employability.

JEL: JO8, J21, J24, J28, J51, J52, J63, J64, J65, J81

Keyword: Labour market flexibility, income security, active labour market policies, Flexicurity, Nordic model, Denmark, skills, employability, competitiveness, trade unions, socioeconomic models, Europe 2020

MASTER THESIS 

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