Flexicurity

Flexicurity

Table of Contents

1. Introduction p. 2

2. Definition p. 2

3. Aim p.

4. Pro’s & con’s p.

5. Opposing views p.

6. Country Example (Flexicurity in Denmark) p.

7. Conclusion p.

8. Bibliography p.

1. Introduction

This business report will be about flexicurity. It is an important policy nowadays and therefore very interesting to write about. We will explain what flexicurity is and what it does. Also we will discuss the pros and cons and the opposing opinions. Then we will show how Denmark applies his flexicurity policy. Finally we will draw a conclusion about flexicurity. Hopefully you will enjoy it.

2. Definition

Flexicurity is a pro-active labour market policy, aiming at simultaneously enhancing both flexibility and security in the labour market. It can be seen as a response to the globalisation of the economy and far-reaching demographic developments such as the aging of the population (Bovenberg & Wilthaven, 2009). As will be explained later the word flexicurity is composed of the term flexibility, with respect to the labour market, and security, in terms of employment and income.

Figure 1: Future outlook of the aging of population of Europe

In the light of globalisation and far reaching demographic developments, flexicurity has become more important for the European members. Every member of the European Union (EU) has to find his own distinct way to create flexicurity within its own country, as all countries have their own and different characteristics. Therefore, a lot of research has been conducted, focusing on flexicurity strategies (van Lieshout & Wilthagen, 2004). In their article, the two authors have developed 20 different strategies to implement flexicurity within a country depending on different labour market characteristics given within a country.

As flexicurity is of high importance not only for the country itself but also for the strength of the EU,...