The Austrian Flexicurity Model: A Source of Inspiration for Other European Union Member States?

Abstract

This article analyses the Austrian configuration of “flexicurity” policies, seeking to broaden the flexicurity discourse by shedding light to some innovative Austrian practices. This paper is structured as follows. First, we situate the Austrian economic and welfare performance in the European context. Subsequently, we present Austria´s flexicurity mix including: active and activating labour market policies; unemployment insurance; training and education; novel wage-setting procedures to guarantee minimum wages without state interference and employment protection features (including the new severance pay measure). Third, we identify the key conditions for Austria’s flexicurity mix, namely a continued reliance on social partnership and a broad political consensus to invest in training and education, and discuss the possibility of transferring Austrian policies to other countries.

Keywords: Austria, labour market policy, unemployment, flexicurity

JEL Classification: J21, J64