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http://hdl.handle.net/10419/28354
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| Title: | | Incentives and complementarities of flexicurity  |
| Authors: | | Brown, Alessio J. G. Snower, Dennis J. |
| Issue Date: | | 2009 |
| Citation: | | [Series:] Kiel working paper [No.:] 1526 [Editor:] Kiel Inst. for the World Economy, Kiel |
| Series/Report no.: | | Kiel working paper 1526 |
| Abstract: | | This paper analyses how and to which degree the Danish flexicurity concept and its various elements achieve the renowned Danish miracle by evaluating their unemployment and inequality effects and their complementarities. We develop a microfounded model of searching workers and firms, calibrate it to Germany and perform the policy experiment of implementing the full Danish flexicurity set of policies (low employment protection, high unemployment benefits and workfare). Our results show that implementing the Danish flexicurity concept in Germany would reduce unemployment and earnings inequality substantially. Furthermore our analysis illustrates that the Danish flexicurity policies have some apparent complementarities in Germany - the reduction of unemployment effect is nearly 40% greater when the policies are implemented in conjunction than in isolation. |
| Subjects: | | Flexicurity workfare firing costs employment unemployment |
| JEL: | | J64 J65 E24 J22 J32 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW Economists Online
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