The Analysis of Flexicurity in the EU Members States



The purpose of this paper is to present the characteristics of labor markets in the EU Member States in terms of design and implementation of policy components of flexicurity, as well as to examine the relationship between flexicurity and labor productivity. The estimates of the characteristics of labor market flexibility and security, and flexicurity models in the EU are based on the descriptive statistics and cluster analysis. The impact of flexicurity on labor productivity is assessed using principal component analysis and linear regression analysis. The results of empirical analysis point on the existence of considerable differences in labor market flexibility and security across EU Member States. The least successful at simultaneous implementation of flexibility and security are New Member States, showing rigid labor market regulation at very low security of employees. On the other hand, the most balanced flexicurity policies, thus ensuring high levels of flexibility and security, can be found among Scandinavian countries. The latter, together with United Kingdom and Ireland, also achieve the highest macroeconomic performance. The positive impact of flexicurity on macroeconomic performance was confirmed by linear regression analysis, which showed a positive relationship between indicators of security in the labor market and labor productivity.

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