The notion of lsquo;flexicurity' has recently become a buzzword in European labour market reform. It promises to deliver a magic formula to overcome the tensions between labour market flexibility on the one hand and social security on the other hand by offering lsquo;the best of both worlds'....

This paper reviews the U.S. welfare reform efforts over the 1990s and the effects of these reforms to date. Seven lessons of potential interest to European observers are discussed, with particular attention to the conclusions of more recent research. Such research indicates, for example, that...