Article i 'Tidsskrift for arbejdsliv' no. 1 1999, page 91-95.
For better or for worse ...
About the need for a flexible labour market policy
Per Kongshøj Madsen
In many respects Danish labour market policy in the 1990s has
been a story of suc-cess. Open unemployment has been halved. Total employment
increased by 170,000 persons. This development can be attri-buted to a
combination of an expansive ma-cro-economic policy and a number of re-forms of
labour market policy making it more flexible and putting more emphasis on the
activation of the individual unem-ployed. However there is a strong risk that
this ambitious policy cannot be retained during a recession, if one does not
think in terms of long-term flexibility, also in de-signing the tools and
instruments of labour market policy. Here the article argues the need to think
in terms of "transitional labour markets" as a way of creating robust
institu-tions on the fringe of the normal labour market.