Labor Market Reforms in Europe: Towards More Flexicure Labor Markets?

30 Pages Posted: 18 Apr 2016

See all articles by Werner Eichhorst

Werner Eichhorst

Institute for the Study of Labor (IZA)

Paul Marx

IZA Institute of Labor Economics

Caroline Wehner

IZA

Abstract

Labor market segmentation refers to a salient divide between secure and insecure jobs and is related to problems in important areas, including macro‐economic efficiency, workers' wellbeing and repercussions for social cohesion. European countries have started a new wave of labor market reforms in the aftermath of the 2008/09 crisis to tackle a number of issues, including labor market segmentation. This particularly concerns reforms in: (1) employment protection, i.e. dismissal protection and restrictions on fixed‐term contracts; (2) unemployment benefit generosity and coverage; and (3) the intensity of active labor market policies.The paper provides an overview of reform patterns and tries to assess whether and to what extent these reforms have led to more or less dualized labor markets in terms of dismissal protection, the provision of unemployment benefits and access to ALMPs. In particular, we will provide some evidence on potential changes in hirings on temporary contracts.

Keywords: employment protection, labor market reforms, unemployment insurance, flexicurity

JEL Classification: J42, J48, J68

Suggested Citation

Eichhorst, Werner and Marx, Paul and Wehner, Caroline, Labor Market Reforms in Europe: Towards More Flexicure Labor Markets?. IZA Discussion Paper No. 9863. Available at SSRN: https://ssrn.com/abstract=2765668

Werner Eichhorst (Contact Author)

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Paul Marx

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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