In view of high and persistent unemployment in the European industrialised countries there is growing consensus that more flexibility is needed with regard to both the legal and institutional conditions governing the labour market (external flexibility) and the management of human resources...

This study examines policies that can successfully address long-term unemployment. It focuses on Denmark and Sweden, where, despite sizeable job losses during the crisis, labour market indicators are at present better than in any other EU country. By looking at the interaction between labour...