The Importance of Institutional Regimes for Active Labour Market Policies — The Case of Denmark

Abstract

The aim of this paper is to evaluate the Danish labour market policy as an example of ‘transitional labour market’ (TLM) and ‘flexicurity’ arrangements, and to assess what general lessons, if any, can be learnt from the Danish example. That is, it seeks to determine whether any implied and express conditions were prerequisites for its success. The article begins by taking a close look at the political history of the Danish labour market, with a brief description of Danish industrial relations and an assessment of its importance for labour market policy. This is followed by a brief historical overview of labour market policy developments. The argument is that policy design as such is not the linchpin -it is, rather, the institutionalisation of the implementation of policy (with a public framework for social dialogue on labour market policy) that is crucial.