Embed Size (px)
Citation preview
Flexicurity - The Danish Active Labour Market Policy: Can it Be Copied?
Thomas Qvortrup Christensen
Confederation of Danish Employers
CICERO FOUNDATION SEMINAR
Paris 15 February 2007
The Danish situation on Labour market
Low unemployment in relation to other EU-Member States and a significant fall in unemployment in the 90s.
3,5 3,8 4,24,8
5,4 5,5 5,76,7 7,1 7,2 7,7 8 8,5 8,8
13 13,3
02468
10121416D
K NL IE LU UK EE SI IT CZ PT
EU25 BE D
E FR SK PL
0246810121416
Unemployment
NOTE: September 2006.SOURCE: Eurostat.
Per cent
The Danish situation on Labour market
Low unemployment in relation to other EU-Member States and a significant fall in unemployment in the 90s.
Lowest unemployment since 70s ! –shortage of labour
Among the countries with the highest participation and employment rates.
Low youth-unemployment
Main characteristics of the Danish employment policy
The active labour market policy in Denmark has traditionally been built on a broad political consensus
Close involvement of the social partners
– Support of active line
– Involved in the regional/local management and implementation
The Danish flexicurity model
Flexible
Labour market
Generous
Benefit system
Active labour
market policy
(ALMP)
Qualification effect
Motivation effect
High flexibility
Many job openings:
• 800.000 job shifts per year
• 300.000 new jobs per year
• 300.000 jobs disappear each year
BenefitsHigh compensation for low-wage groups: 90 pct.
Duration: 4 years
ALMP
Emphasis on upgrading of skills
Test of availability
Average Job Tenure in OECDYears
SOURCE: CEPS (2004).
4
6
8
10
12IC
EU
SD
KU
K IE NL
CZ
NO
HU ES
CH Fl PT PL D
GR SKF L SE B IT
OEC
D
4
6
8
10
12
0123456789D
K AT NL SE DE
FIN BE EIR
UK IT FR ES PT GR
0123456789(4,3) (3,6)
(2,2) (4,9) (7,4) (9,1) (6,7) (3,9) (5,0) (9,1) (8,4) (10,8)(4,0)
(10,8)
Employment Security
NOTE: Figures in brackets are unemployment rates in 2001.SOURCE: CEPS (2004) and Eurostat.
Scale from 1-10 – the higher the number the more secure, 2001
Participation in Continuing Education
Per cent of employed, 2003
SOURCE: OECD (2006).
0
10
20
30
40
50
SE DK
US
FI CH
UK
CA
AT
FR SK BE
DE
LU CZ
IE NL
PL PT ES
GR
HU
IT
0
10
20
30
40
50
NOTE: Covers non-formal job-related continuing education and training over the previous 12 months.
0,00,51,01,52,02,53,03,5
DK
SE NL
EI
FR FI EU
-15
NO
LUX
IT BE
DE
ES
AU
PT EL
0,00,51,01,52,02,53,03,5
Educational Costs at Company Level
Per cent of total labour costs for educational training in private companies, 1999
SOURCE: Eurostat (2002).
Regulation by Framework Agreements
Collective agreements cover aprox. 90 pct. of the employed in companies affiliated to DA member federations
Framework agreements
Supplemented by agreements at company level
Employment Regulation Collective agreements the primary
regulation:
Wages
Working time, overtime
Redundancies, shop stewards, extra holidays
Sickness pay, maternity leave, pension, training,
Legislation only on specific topics:
Holidays
Health and safety
Equal pay and equal treatment (sex, race, religion etc.)
Flexicurity in Europe?
Outcome of long history
Social partners role
Social security, pensions, health care are not a part of a specific position
High degree of flexibility for all groups
ALMP – availability-testing and upgrading is very expensive
Company structure. Mainly smaller firms
Challenges
Globalization
Ageing
Changes to the Danish system – dynamics is crucial
Low Availability of Unemployed
Per cent of unemployed, 2005
SOURCE: Special report from Statistics Denmark.
0
10
20
30
40
50
15-24 25-29 30-49 50-59 60-66
0
10
20
30
40
50
Do not wish to work Do not seek work Not able to attend work
Years old
Making Work Pay
Incentives to work for the lowest paid are small
26 per cent of the unemployed gain less than 70 Euro/month if they get a job.
12 per cent of the employed gain less than 70 Euro/month compared with the unemployment benefit.
5 per cent of the employed earn less than if they were unemployed.
SOURCE: Rockwool Foundation (2003).
