On the Road to Flexicurity: Dutch Proposals for a Pathway Towards Better Transition Security and Higher Labour Market Mobility

Abstract

As regards labour-market reform and employment policies, the European Union currently touts the concept of 'flexicurity', aiming at simultaneously enhancing both flexibility and security in the labour market in view of the globalization of the economy and far-reaching demographic developments such as the ageing of the population. Each Member State is expected to map out its own distinct pathway towards more flexicurity and the European Commission has, for that matter, suggested a set of four idealtypical pathways. Therefore a need exists for ideas and examples on how to elaborate a flexicurity pathway, looking for inspiration rather than imitation. In the Netherlands, a government-appointed Committee on Labour Market Participation (the so-called Bakker Committee) has recently published proposals and recommendations for further reform of the Dutch labour market. This paper discusses the part of these proposals that involves a particular flexicurity pathway towards better transition security and higher labour-market mobility. This possible pathway, now being debated in the Netherlands, may also be of interest to other Member States.

Keywords: flexicurity, transition security, labour market reform, employability, unemployment insurance

JEL Classification: J00, J2, K31