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

Yann Algan () and Pierre Cahuc

No 1928, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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.

Keywords: job protection; unemployment benefits; civic attitudes (search for similar items in EconPapers)
JEL-codes: J23 J65 J68 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-lab
Date: 2006-01
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Working Paper: Civic Attitudes and the Design of Labour Market Institutions: Which Countries Can Implement the Danish Flexicurity Model? (2006)
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