46 Pages Posted: 19 May 2006
Date Written: February 2006
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.
Keywords: Job protection, unemployment benefits, civic attitudes
JEL Classification: J23, J65, J68
Suggested Citation: Suggested Citation
Cahuc, Pierre and Algan, Yann, Civic Attitudes and the Design of Labour Market Institutions: Which Countries can Implement the Danish Flexicurity Model? (February 2006). CEPR Discussion Paper No. 5489. Available at SSRN: https://ssrn.com/abstract=903307
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