Implementation of flexicurity in Slovenia

Abstract

Flexicurity remains an important policy instrument in the EU and will be especiallyimportant in the changing economic and labor market environment, characterized with changing nature of work and development of new forms of work. Purpose. This paper examines the implementation of flexicurity policies in Slovenia and compares them with the EU countries. Design/methodology/approach. As there is no uniform measure of flexicurity, the analysis is structured in accordance with four elements of flexicurity policies, developed within the EU, and suitable indicators: (i) flexibility of contractual relations; (ii) lifelong learning; (iii) active labor market policies; and (iv) social protection system. Analysis uses descriptive statistics for last available years and compares these data with crisis year 2010. Data for international comparisons were obtained from the European Commission, Eurostat and Organization for the Economic Co-operation and Development, Statistical Office of the Republic of Slovenia and the Employment Service of Slovenia. Findings and iImplications. Slovenia has in the past already performed labor market reforms that relate to flexicurity components, yet there is still room for improvement. These are especially needed in the field of lifelong learning and expenditures for active labor market policies, where Slovenia is at the tail of the EU countries. In the front of flexibility, a significant decline in the employment protection was noticed with the last legislative change in 2013, which aimed at reducing segmentation and increasing labor market flexibility. In the front of social protection, Slovenia is among the EU countries with the most generous social systems, which, on the other hand, create high work disincentives. Limitations. This study focuses only on the presentation of the recent indicators of flexicurity components, which is one of its major limitation. Future research should study in more detail the effects of flexicurity on labor market, reconsider the importance of flexicurity in assuring decent work and develop a more comprehensible measure of flexicurity. Originality. The paper adds to the existing literature on Slovenia by giving an overview of recent developments of flexicurity concept, pointing on the areas that require policy response.