Transcript “The Danish Model of ‘Flexicurity’ – An Active Labour Market Strategy for Older Workers” International Seminar for Experts organised in the series.

“The Danish Model of ‘Flexicurity’ – An Active
Labour Market Strategy for Older Workers”
International Seminar for Experts organised in the series Great Debates
by the Cicero Foundation
Paris 10 and 11 March 2005
Thomas Qvortrup Christensen
Outline
•
•
•
•
The Danish labour market
Flexicurity
Special cases for older workers
Summary
The Danish situation on the labour market
• Low unemployment in relation to other EU
Member States and a significant fall in
unemployment in the 90s.
• Among the countries with the highest participation
and employment rates.
• But, at the same time, we are the country with the
biggest number of people on public support.
• Demographic challenge: More people in the high
age groups - fewer in the work force.
16
16
14
14
12
12
10
Total
10
8
8
50-66-year olds
6
6
4
4
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Pct.
Pct.
Unemployment in Denmark, 1991-2003
Persons on transfer payments,
1970-2003
35
25
20
Unemployment benefits
Cash benefits
Activation and rehabilitation
Leave, maternity/parental leave
Sickness benefits
Voluntary early retirement pay
Anticipatory pension
30
25
20
02
20
00
20
98
19
96
19
94
19
92
19
90
19
88
19
19
19
19
19
19
19
19
19
19
86
0
84
0
82
5
80
5
78
10
76
10
74
15
72
15
70
Per cent of the 15-66 year old
30
35
Inside and outside labour market
1000 persons
1000 persons
3400
3400
3200
3200
3000
3000
2800
2800
2600
2600
2400
2400
2200
2200
2000
2000
1960 1970 1980 1990 2000 2010 2020 2030 2040
Labour force
Outside labour force
Characteristics of the Danish employment policy
• The active labour market policy in Denmark has
traditionally been built on a broad political consensus.
• A high degree of regionalisation of the administration 14 independent regions/counties in Denmark.
• Close involvement of the social partners:
• In connection with labour marker reforms, the social
partners have supported the active line.
• Involvement of the social partners in the regional
management and implementation of the measures.
The Danish flexicurity model
High flexibility
Flexible
Labour market
Many job openings:
• 800.000 job shifts per year
• 300.000 new jobs per year
• 300.000 jobs disappear each year
Qualification effect
ALMP
Generous
Active labour
benefitsystem
market policy
(ALMP)
Benefits
High compensation for
low-wage groups: 90 pct.
Duration: 4 years
Motivation effect
Emphasis on
upgrading of skills
Test of availability
Latest labour market reform
“More people at employment” 2002
•
•
•
•
The vision of the one string system
More direct ways into employment
External stakeholders
It should pay to work
• Away from the flexicurity model
Older workers in a flexicurity context
• Rules for older workers
– Early retirement benefit
– Longer UI for unemployed older than 55 years
– Forced early retirement for 60 + if unemployed more
than 2½ years
– Activation from 6 months for 60+
ye
a
51 r
ye
a
52 r
ye
a
53 r
ye
a
54 r
ye
a
55 r
ye
a
56 r
ye
a
57 r
ye
a
58 r
ye
a
59 r
ye
a
60 r
ye
a
61 r
ye
a
62 r
ye
a
63 r
ye
a
64 r
ye
a
65 r
ye
ar
50
Per cent
60
50
40
20
10
48
50
43
42
50
50
39
30
30
19
17
13
15
15
16
0
20
9
7
10
0
Per cent
Activation 50 years+
60
50
42
40
65
ar
15
ye
ar
10
ye
ar
ye
ar
7
64
63
4
ye
ar
ye
ar
5
62
61
30
25
19
13
15
8
9
3
0
10
6
5
0
Per cent
26
ye
ar
ye
ar
ye
ar
ye
ar
25
60
59
58
57
20
ye
ar
6
ye
ar
ye
ar
8
56
55
54
7
ye
ar
ye
ar
ye
ar
ye
7
53
52
51
50
Per cent
Share of long-term unemployed 50 years +
30
27
25
25
20
Unemployment and activation 50 years+
10.000
20
9170
9.000
18
8120
16
7320
7.000
14
6370
6.000
12
5150
5.000
4.000
10
4330
3830
3760
3750
4000
8
3.000
6
2520
1810
2.000
4
990
1.000
550
390
280
ar
ye
ar
65
ye
ar
64
ye
ar
63
ye
ar
62
ye
ar
61
ye
ar
Unemployed and activated (l-axis)
60
ye
ar
59
ye
ar
58
ye
ar
57
ye
ar
56
ye
ar
55
ye
ar
54
ye
ar
53
ye
52
ye
51
ye
50
ar
0
ar
0
2
Per cent (r-axis)
Per cent
8.000
Unemployment in Sweden and Denmark
12
12
10
10
8
8
6
6
4
4
Sweden
2
2
0
0
50
51
52
53
54
55
56
57
58
Age
59
60
61
62
63
64
65
Percent
Percent
Denmark
Summary
• Can the Danish model be adopted ?
• Challenges for the Danish flexicurity model
• The older workers
Labour force and employed
3
KOR
Gns. beskæftigelsesvækst i pct.
2,5
LUX
CAN
ISL
2
NLD
IRE
USA
AUS
NZL
1,5
TUR
NOR
DEU
PRT
1
CHE
AUT GRC ESP
JPN
FRA
0,5
SWE
UKDK
FIN
ITA
BEL
0
0
0,5
1
1,5
Gns. vækst i arbejdsstyrken i pct.
2
2,5
3
The Danish flexicurity model
The labour
market
employed
2,8 mill.
Unemployment
insurance
180,000 persons
recieving unemployment benefits
Active labour
market policy