Flexicurity
– a set of “common principles”?
Per Kongshøj Madsen
Centre for Labour Market Research (CARMA)
University of Aalborg
www.carma.aau.dk
BPFnet-seminar
Copenhagen, June 9, 2006
European Council March 2006
In this context, the European Council asks
Member States to direct special attention to
the key challenge of "flexicurity" (balancing
flexibility and security): Europe has to exploit
the
positive interdependencies between
competitive-ness, employment and social
security…. The Commission, jointly with
Member States and social partners, will
explore the development of a set of common
principles
onEuropean
flexicurity.
Presidency
conclusions,
Council, Brussels, 23-24 March 2006
Some general advice
• Flexibility and security for the employees
do not have to be contradictions
• Focus on protected mobility for people
instead of trying to protect jobs
• Flexicurity arrangements can strengthen
overall institutional competitiveness by
promoting structural change
• ”One size will not fit all”
Four major criteria for
transitional labour markets
• Empowerment: empower individuals to cope with
the (new) risks of social life
• Sustainable employment and income: make
transitions pay!
• Flexible coordination: establish a new balance
between centralised regulation and selforganisation, more decision power to local levels
• Co-operation: stimulate local networks and publicprivate partnerships; the linking of resources
Schmid & Gazier (2002)
Assessing the Hartz-reforms
First, we ask to what extent flexibility …has been
strengthened by the latest labour market reforms.
To assess the security dimension, we ask whether the
measures provide minimum income security to the
atypically employed.
… we further concentrate on the question if the measures
enable transitions into standard employment, as an
expression of enhanced employability.
Lastly, we try to assess if option security among the
atypically employed is improved
Leschke et al (2006)
Preliminary thoughts
• We are looking for a strategy for policymaking
• The specific traits of ”flexicurity policies”?
– Integration of different policy areas
– There will be winners and loosers – at least in
the short run
– Principles for the policy process should be
included
Common principles?
• The design:
– The principle of integrating flexibility and
security
• The process:
– The principle of negotiated ”trade-offs”
• The outcome:
– The principle of sustainable employment and
social cohesion
# 1: Policy-design
• Both the flexibility and the security elements of
the flexicurity strategy must be well defined
• The interaction between the flexibility and the
security elements must be unambiguous with
respect to trade-off(s), positive interactions and
vicious circles.
• Mechanisms of compensation for potential gains
and losses for different groups must be included in
the strategy.
#2: Process
• All relevant stakeholders (including those at the
local level) should take part in the process
• The process must be transparent with respect to
the distribution of gains and losses
• The political process should include political
guarantees that ensure the implementation of the
flexicurity strategy over time.
• The flexicurity strategy should mobilize and link
resources from different actors.
#3: Outcome
• The flexicurity strategy should in the long run
improve the employment options and the quality
of employment for all groups on the labour
market.
• The flexicurity strategy should have an
advantageous effect the distribution of welfare and
living conditions in general.
• The flexicurity strategy should empower weak
groups to cope with their situation
A hierarchy
• Three overarching principles
• A number of more specific
guidelines/checklists
• Best practices (the toolbox..)