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Flexicurity in Europe

Flexicurity in Europe. Sofia Murhem Department of Economic History Uppsala University. Why flexibilty. New technical-economical paradigm, th third industrial revolution New production methods New consumer behaviour Resulting in new demand for flexible labour. Worst case scenario.

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Flexicurity in Europe

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  1. Flexicurity in Europe Sofia Murhem Department of Economic History Uppsala University

  2. Why flexibilty • New technical-economical paradigm, th third industrial revolution • New production methods • New consumer behaviour • Resulting in new demand for flexible labour

  3. Worst case scenario • A serviced based economy causes an increasingly divided labour market • Baumol’s theory on productivity and wages in the service sector • Five sector economy

  4. Why security • The notion of social Europe • The European Employment Strategy (EES) • Social inclusion • Hard vs soft law

  5. What is flexicurity? • Flexicurity is a degree of both flexibility and security facilitating at the same time labour market careers and social inclusion, and allowing for adjustments to changing conditions of labour markets and individual companies.

  6. Security • Social protection • More specifically • active labour market policies (Scandinavian model) • passive labour market policies such as unemployment benefits • also overall social policy

  7. Flexibility • Employment protection • 3 groups in Europe of countries • Low (UK, Ireland, Denmark) • Middle (Sweden, France, Germany) • High (Southern Europe)

  8. How to combine flex and security • Short tenure- low percentage temporary employment • Long tenure- high percentage temporary employment • Key word social protection • The Scandinavian model

  9. Your role • While the EU is mainly aiming at the social partners, there is a role for you to facilitate entrances and exits on the labour market • But national path dependencies are highly important • Decide on both scale and scope • Determine your scope of action

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