What is the Danish flexicurity model?

The Danish employment system’s combination of flexibility and security is often described as a ‘golden triangle’. The Danish model, known as the “flexicurity model”, combines high mobility between jobs with a comprehensive income safety net for the unemployed and an active labour market policy.

What is flexicurity?

flexibility and security
Flexicurity is an integrated strategy for enhancing, at the same time, flexibility and security in the labour market. It attempts to reconcile employers’ need for a flexible workforce with workers’ need for security – confidence that they will not face long periods of unemployment.

How does flexicurity work?

It combines flexible hiring and firing with a generous social safety net and an extensive system of activation policies. The Danish model has resulted in low (long-term) unemployment rates and the high job flows have led to high perceived job security (Eurobarometer 2010).

Is it easy to get fired in Denmark?

It comes as a surprise to many outsiders that Denmark is actually one of the easiest places to get fired in Europe. A construction worker here can be fired with as little as three days’ notice.

How much are Denmark union dues?

The membership fees for trade unions vary. In most cases, it is below DKK 1,000 every 3 months. Up to DKK 3,000 is tax deductible per year.

What is flexicurity policy and where is it used?

flexicuritynoun. A welfare state model with a proactive labour market policy, combining easy hiring and firing (flexibility for employers) and high benefits for the unemployed (security for the employees).

What is flexible labour market?

Labour market flexibility refers to the willingness and ability of labour to respond to changes in market conditions, including changes in the demand for labour and the wage rate. Labour market flexibility is an important aspect of how labour markets function to adjust supply to demand.

Who pays for sick leave in Denmark?

employer
If you are absent from work due to illness, your sickness benefit is paid by your employer and/or the local authority. If you do not receive full pay from your employer when ill, then the employer must pay you sickness benefit for the first 30 calendar days.

Why are wages so high in Denmark?

The Danish Flexicurity model is based on a long tradition of dialogue between employer associations and labour unions. Instead, the relatively high wages are set as part of the regular negotiations between the employers and labour unions. Around 67 % of Danish workers are union members.

Where did flexicurity originate?

The concept itself originates from the Netherlands. One of the aims of Dutch legislation introduced in the mid-1990s was to provide part-time and temporary employees with greater security of employment.

Is a flexible labour market good?

The UK is ranked 8th out of more than 140 countries in terms of labour market flexibility and this is seen to many as a strength of the supply-side of the economy.

How is flexicurity used in the Danish economy?

In relation to Denmark, the concept has been used to explain a positive dynamic generated by liberal redundancy regulations, high unemployment benefits (UB), and active labor market policies (ALMP). Since the Great Recession, the attention to the concept seems to have reduced somewhat, both in political circles as well as among academics.

How are the Dutch and Danish flexicurity models different?

Although the Danish flexicurity model resembles the European flexicurity concept to a large extent, recent reforms have, overall, weakened rather than strengthened the flexicurity model. The Dutch flexicurity model has a narrower focus on normalizing atypical work, while recent reforms support this narrow flexicurity model.

How did Denmark respond to the Great Recession?

Labour-market responses to the great recession. At the onset of the crisis the strategies of Germany and The Netherlands, however, diverged from that of Denmark. In Denmark, firms immediately fired workers and the initial employment response was larger than would be expected from the fall in output.

When did the concept of flexicurity become popular?

The concept of “flexicurity”, i.e., the combination of flexibility and security in the labor market, attracted a lot of attention in the year prior to the Great Recession which started in 2008.