Johnny Munkhammar skrev på denna blogg från 2004 till sin död 2012. Bloggen är upprätthållen som ett minne och som referens till Johnnys arbete av Johnny Munkhammars minnesfond.

This blog was operated by Johnny Munkhammar from 2004 until 2012 when he passed away. This blog is now in a memorialized state and operated by the Johnny Munkhammar fund.
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Saturday 20/07/2024, 15:34:24

22/05/2006 3:37:34 pm
Flexicurity. A good libertarian economist and blogger writes about the Danish flexicurity model. He claims that I have joined those who appreciate this model, though my own Briefing Paper about employment shows that Denmark is by no means a great job-creator.

What I like with the Danish model is the flexibility part. I think that de-regulation is a good reform example for other countries to follow. And I think that part is the main reason for Denmark having the lowest youth unemployment in Europe.

But Denmark′s overall economic growth and employment development has not been impressive. They too should do many more reforms. Perhaps the two other parts of the flexicurity model create more problems than they solve?

High contributions - 90 % - from the state to unemployed leads to high taxes. That, in turn, has a negative effect on job creation. And vast government programs for unemployed are likely to be less efficient than such services provided by private companies.

Denmark did one labour market reform right, but they could do two more: Flexible levels of contributions for unemployed and privatised job training.

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