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

Yann Algan (1) , Pierre Cahuc (2)

1 ECON - Département d'économie (Sciences Po)
2 X-DEP-ECO - Département d'Économie de l'École Polytechnique

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.

Mots clés: job protection; civic attitudes; unemployment benefits

Domaines: Economies et finances

Yann Algan, Pierre Cahuc. Civic Attitudes and the Design of Labour Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?. 2006. ⟨hal-01065624⟩