European flexicurity: concepts, methodology and policies

The concept of flexicurity denotes the idea of compensating labour market deregulation (i.e. flexibilisation) with advantages in employment security and social security. This article presents a brief history of the concept and an operational definition which leads to indicators for monitoring the effects of flexicurity policies in Europe. Empirical study shows that, contrary to political promises and theoretical considerations, labour market deregulation has totally outweighed social development. The following measures are proposed with a view to overcoming contradictions between several European employment policies: (1) adoption of flexinsurance, which makes the employer's contribution to social security proportional to the flexibility of the contract and/or risk of unemployment, (2) introduction of elements of a basic minimum income, and (3) measures to constrain financial markets.