The paper provides a theoretical rationale for flexicurity policies, which consist of low employment protection …, generous unemployment insurance and active labor market programmes. It analyzes in which conditions flexicurity can be optimal … flexicurity is optimal, and where it is not optimal. …

This paper considers the role of flexicurity when jobs must be reallocated from a declining, traditional sector to a … the tax schedule with three pillars of ‘flexicurity’. The optimal policy includes (i) a progressive wage tax schedule; (ii …

takes place. Finally, we evaluate the effect of a move to "flexicurity" on the employment-output elasticity in each country. …

takes place. Finally, we evaluate the effect of a move to 'flexicurity' on the employment-output elasticity in each country. …