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Crisis and the welfare state: the role of public employment services for job placement and the Danish flexicurity system during COVID-19

Author

Listed:
  • Torben Dall
  • Timo Mitze

Abstract

Denmark is a Nordic welfare state with local government autonomy in public service provision related to workfare policies. We use a policy experiment that re-opened on-site public employment services after the first COVID-19 lockdown in a spatially staggered manner to provide evidence on the effect of public employment services on job placement during a crisis. Early re-opening of on-site public employment services is associated with a better local labour market performance. It particularly benefits low-skilled unemployed and rural areas with specific sector mixes and demographic structures, why workfare-oriented welfare state arrangements remain important to counter social and regional imbalances.

Suggested Citation

  • Torben Dall & Timo Mitze, 2023. "Crisis and the welfare state: the role of public employment services for job placement and the Danish flexicurity system during COVID-19," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(1), pages 65-79.
    • Handle: RePEc:oup:cjrecs:v:16:y:2023:i:1:p:65-79.
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