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ABSTRACT
Finding the right balance between flexibility and security in working arrangements, is today one of the major employment policy priorities in majority of European countries. The paper analysis flexicurity concept which provides important answers to the question of how to meet modern labor market challenges and at the same time improves security. The model combines high mobility between jobs with a comprehensive social safety net for the unemployed and an active labor market policy. Over the past decade there is a clear tendency towards reducing the strictness of employment protection (EPL) - mostly focused on regulations governing individual and collective dismissals. Namely, the level of labor market flexibility is also reflected by the share of temporary and part-time employment in total employment. The most important thing in removing rigid labor market rules involves introducing flexicurity: moving from protecting jobs to protecting workers. Actual situation in EU labor market indicates on the existence of considerable differences in labor market flexibility and security across EU Member States. An adequate equilibrium between the need of protecting employees and efficiently allocating labor is a key priority for policy makers. Therefore, the focus in this research is on the following flexicurity variables: EPL index and unemployment benefits (UBs).
Keywords: flexicurity, EPL, labor market, unemployment benefits
1. INTRODUCTION
The paper analysis flexicurity concept which provides important answers to the question of how to meet modem labor market challenges and at the same time improves security. The main question is - why a flexicurity of labor market at all? According to the Council of the EU (2003), flexicurity presents a tool that would positively affect competitiveness of firms, enhance quality and productivity at work and facilitate adaptation of employers and employees to economic changes. It presents the right balance between flexibility and security and today is one of the major employment policy priorities of the EU and its members. In the paper the flexicurity concept in the selected countries (EU and OECD) is examined. The analysis includes the impact of flexicurity policy components (i.e. employment protection legislation, unemployment benefit rates and their duration) on labor market performance over the past decade. The concept of flexicurity promotes the idea of finding the right balance between flexibility and security at the labor...