The Danish flexicurity model and institutional setup

Delivering good economic and social outcomes, the well-known Danish flexicurity model has inspired a number of other countries over the past decade. The global financial crisis raised doubts about the sustainability of such a model in an economic downturn. This chapter describes the Danish model, the institutional setup and the main actors involved. The chapter highlights the challenges in regard to i) employment protection legislation fostering flexibility for employers, ii) the income support system providing a safety net for displaced workers, and iii) the activation strategy helping displaced workers back into work.