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LABOUR MARKET EFFECTS OF FLEXICURITY FROM A REGIONAL PERSPECTIVE
Author(s) -
DE GROOT AYOLT J.,
ELHORST J. PAUL
Publication year - 2010
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/j.1467-9663.2009.00562.x
Subject(s) - flexicurity , danish , unemployment , flexibility (engineering) , labour market flexibility , economics , social security , perspective (graphical) , labour economics , demographic economics , market economy , macroeconomics , linguistics , philosophy , management , artificial intelligence , computer science
One of the main questions for politicians is how to introduce more flexibility in the labour market while still providing employees with ample social security. The concept of flexicurity has sprung to attention through its success in Denmark. This paper explores whether the Danish model can also be successful in other European countries. A simultaneous equations model is constructed and estimated using regional data, which is an extension of the Blanchard‐Katz model developed in 1992. It is found that a European country such as the Netherlands can permanently lower its unemployment rate and increase its participation and employment growth rates at the regional level, by 1.47, 2.08 and 1.05 percentage points respectively, if it copies the Danish model.