1 / 12

Mads Peter Klindt, Assistant Professor, PhD Center for Labour Market Research (CARMA)

Beyond flexicurity: Labour market policy adjustments and welfare reform in Denmark in the wake of the financial crisis. Mads Peter Klindt, Assistant Professor, PhD Center for Labour Market Research (CARMA) Aalborg University mpk@dps.aau.dk

ownah
Download Presentation

Mads Peter Klindt, Assistant Professor, PhD Center for Labour Market Research (CARMA)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Beyond flexicurity: Labour market policy adjustments and welfare reform in Denmark in the wake of the financial crisis Mads Peter Klindt, Assistant Professor, PhD Center for Labour Market Research (CARMA) Aalborg University mpk@dps.aau.dk Presentation at the MSE, Centre d’Economie de la Sorbonne, Paris May 27, 2011

  2. Agenda • The Danish model of flexicurity as it was • Governance reform and policy changes in 2007/09 • Rigging the ship: Small labour market adjustments in the wake of the crisis outbreak • Changing the course: Debt crisis and new reform agenda • Beyond flexicurity: New dynamics on the Danish labour market

  3. Denmark’s ‘Golden Triangle’ of flexicurity Traditionelt samspil mellem fleksibilitet og sikkerhed siden 1899/1907 (1969) Fleksibeltarbejds-marked Opvalificering og omallokering (1994-2001) Generøse overførsels-indkomster Aktiv arbejds-markeds-politik Arbejdsmarkedspolitikkens trusselseffekt (2001-) 3

  4. 2007/09: Governance reform Ministry of Employment State financesu.b. and activation Local gov.partly finances social assistance One-stop-shop jobcentres Insured (unemployment benefits) Uninsured (means testedsocial assistance) Local government take over full responsibility(50/30 % of benefit payments reimbursed) Local government(91 Municipalities)

  5. Small adjustments during 2009 Activation of young persons between 15 - 17 Immediate activation of people between 18-19 year old (ordinary education on ordinary conditions or job training on similar benefit). Stronger effort to combat long term unemployment among people aged18-30 (task force, screening of writing skills, regional planning) Altogether 500 mio. DKK

  6. 2010: Economic restoration plan Unemployment benefits maximum duration cut from 4 to 2 years (1,3 billion DKK) Eligibility rules tightened CVT-allowance reduced by 20 percent Tax deduction for trade union membership fee reduced + loads of other initiatives Altogether public spending cut by 24 billion DKK

  7. 2011: Reform package 2020 Further initiatives to cut down public spending (23 billion DKK) Most importantly reforms of the early retirement scheme (efterløn) and old age pension Retirement age will increase according increase in average lifespan Early retirement scheme will be reduced from 5 to 3 years and become less attractive for people with labour market pensions

  8. Incremental developments since the 1990s Falling UB compensation rates Traditional trade unions loose members Active labour market policy much more focused on “work first”

  9. UB replacement rates

  10. Independent UB insurance funds in growth

  11. Reduced use of ordinary education in the ALMP

  12. Conclusion: Denmark beyond flexicurity

More Related