Crisis and the welfare state: the role of public employment services for job placement and the Danish flexicurity system during COVID-19

Torben Dall and Timo Mitze

Cambridge Journal of Regions, Economy and Society, 2023, vol. 16, issue 1, 65-79

Abstract: Denmark is a Nordic welfare state with local government autonomy in public service provision related to workfare policies. We use a policy experiment that re-opened on-site public employment services after the first COVID-19 lockdown in a spatially staggered manner to provide evidence on the effect of public employment services on job placement during a crisis. Early re-opening of on-site public employment services is associated with a better local labour market performance. It particularly benefits low-skilled unemployed and rural areas with specific sector mixes and demographic structures, why workfare-oriented welfare state arrangements remain important to counter social and regional imbalances.

Keywords: COVID-19; public employment services; welfare state; local labour markets; skill levels; geography (search for similar items in EconPapers)
Date: 2023
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