Table 2 Stress factors with respect to the main components of the Danish flexicurity model
From: “Shelter from the storm?” - Danish flexicurity and the crisis
Flexicurity pillar | Stress factors(s) |
|---|---|
Income support to unemployed covering the majority of wage earners for an extended period of time and with a relatively high compensation rate (especially for low-income groups) | • The shortening of the duration of unemployment benefits from 4 to 2 years taking full effect from 2013 |
• A gradual decline in the compensation rate of unemployment benefits relative to wages since the early 1980s | |
• A decline in the share of workers that enroll in UI-funds | |
Active labour market policies emphasizing early activation and upgrading of the skills of the unemployed | • A falling share of unemployed taking part in counselling and training programmes |
• Problems for the job-centres in keeping the deadlines with respect to activation of the unemployed | |
A flexible labour market with a high degree of external numerical flexibility | • The introduction of minor elements of severance pay for blue-collar workers in the collective agreements in the affective compensation rate of the UI-system and the shortening of duration of benefits. This opens for further increases in the future rounds of negotiation. |