Opportunities and challenges for flexicurity - The Danish example

The contraction of two previously opposed concepts, ‘flexibility’ and ‘security’, into that of flexicurity has become one of the most popular labour market concepts in recent years, and one that seems to cross European borders relatively easily. Seen in an international perspective, Denmark is characterised by a relatively flexible labour market and an extensive social security system. It is widely assumed that these favourable results are due to the special Danish combination of flexible employment regulations, an active labour market policy including rights and duties of education and placement, and relatively high unemployment benefits. In recent years the concept flexicurity has come to be used to describe the particular Danish mix of labour market flexibility and social security. Against this background, this article outlines the economic and political characteristics of the Danish ‘flexicurity model’, and the current challenges facing this model. Finally, the lessons that other European countries can learn from this Danish model will be presented.