Concept and emergence
Labor market flexibility and worker protection were traditionally seen as conflicting goals. Wilthagen and Tros (2004) defined flexicurity as a strategy to raise both at once, stressing employment security (being able to keep working, even across jobs) over job security (keeping the same job). It also responds to concerns raised by insider-outsider theory and dual labor market theory that strong protection for permanent workers splits the labor market.
Denmark's golden triangle
Madsen (2004) described the Danish model as a 'golden triangle'. First, weak dismissal rules let firms adjust staff flexibly. Second, generous unemployment benefits replace much of previous income. Third, active labor market policies such as training and job-search support help the unemployed return to work. Andersen and Svarer (2007) found that the model achieved high job turnover alongside low long-term unemployment. Kluve's (2010) meta-analysis showed that private-sector employment subsidies and job-search assistance are among the most effective active policies.
Diffusion and critiques
In 2007 the European Union adopted common principles of flexicurity and recommended them to member states. Yet Viebrock and Clasen (2009) noted that the Danish model rests on special conditions such as high taxes, strong trust between employers and unions, and union-run unemployment insurance, making it hard to transfer. Burroni and Keune (2011) argued that the vague concept risks stressing flexibility while weakening security. Auer (2010) found that flexicurity discourse lost force amid mass unemployment after the 2008 financial crisis.
FAQ
- What is flexicurity in simple terms?
- A model in which firms can hire and fire easily, but people who lose jobs get generous benefits and retraining to protect their livelihoods.
- Can other countries easily adopt the Danish model?
- Many think not, because it depends on high taxes, trust between employers and unions, and strong training systems.
Sources reviewed: 2026-10-26
References
- Wilthagen, T., & Tros, F. (2004). The concept of 'flexicurity': A new approach to regulating employment and labour markets. Transfer: European Review of Labour and Research, 10(2), 166–186. Defines the concept.
- Madsen, P. K. (2004). The Danish model of 'flexicurity': Experiences and lessons. Transfer: European Review of Labour and Research, 10(2), 187–207. The Danish golden triangle.
- Andersen, T. M., & Svarer, M. (2007). Flexicurity—labour market performance in Denmark. CESifo Economic Studies, 53(3), 389–429. Danish labor market performance.
- Kluve, J. (2010). The effectiveness of European active labor market programs. Labour Economics, 17(6), 904–918. Meta-analysis of ALMPs.
- Viebrock, E., & Clasen, J. (2009). Flexicurity and welfare reform: A review. Socio-Economic Review, 7(2), 305–331. Review from welfare reform angle.
- Burroni, L., & Keune, M. (2011). Flexicurity: A conceptual critique. European Journal of Industrial Relations, 17(1), 75–91. Conceptual critique.
- Auer, P. (2010). What's in a name? The rise (and fall?) of flexicurity. Journal of Industrial Relations, 52(3), 371–386. Rise and fall after the crisis.
- European Commission. (2007). Towards common principles of flexicurity: More and better jobs through flexibility and security. Office for Official Publications of the European Communities. EU common principles.