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Discussion Paper Details

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

Author(s): Yann Algan and Pierre Cahuc

Publication Date: February 2006

Keyword(s): civic attitudes, job protection and unemployment benefits

Programme Area(s): Labour Economics

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.

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Bibliographic Reference

Algan, Y and Cahuc, P. 2006. 'Civic Attitudes and the Design of Labour Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5489