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Civic Attitudes and the Design of Labour Market Institutions: Which Countries can Implement the Danish Flexicurity Model?Pierre CahucNational Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); Université Paris I Panthéon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA); French National Center for Scientific Research (CNRS); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA) Yann AlganUniversite Paris I Pantheon-Sorbonne - CNRS-EUREQUA; Institute for the Study of Labor (IZA) February 2006 CEPR Discussion Paper No. 5489 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.
Number of Pages in PDF File: 46 Keywords: Job protection, unemployment benefits, civic attitudes JEL Classification: J23, J65, J68 working papers seriesDate posted: May 19, 2006Suggested CitationContact Information
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