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On the marriage of flexibility and security: Lessons from the Hartz-reforms in Germany

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  • Leschke, Janine
  • Schmid, Günther
  • Griga, Dorit

Abstract

In the context of the ongoing reforms on European labour markets the keyword 'flexicurity' is presently gaining prominence. We therefore want to explore the importance of the flexicurity-concept on the example of the German Hartzreforms. Starting from the frequently used definition as a trade-off between employers' demands for flexibility and employees' needs for security, different conceptualisations of flexicurity are considered, and criteria for an efficient and equitable flexicurity-nexus are developed. The German debate on flexicurity is briefly looked at. The main part of the paper is devoted to analysing four policy measures which were implemented within the Hartz-reforms: 'Ich-AG' allowance for newly founded businesses, 'personnel service agencies' ('PSA') to place unemployed into regular employment, 'Mini-Jobs' and the introduction of 'Midi-Jobs' which were supposed to serve as stepping stones into employment subject to social insurance contributions and 'wage insurance' for elderly workers. It is assessed whether the measures contribute to enhancing the components of flexibility and security and whether the measures are appropriately balanced. The analysis reveals that the measures' quality could be improved by strengthening different components of the security dimension.

Suggested Citation

  • Leschke, Janine & Schmid, Günther & Griga, Dorit, 2006. "On the marriage of flexibility and security: Lessons from the Hartz-reforms in Germany," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-108, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzblpe:spi2006108
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    References listed on IDEAS

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    1. John P Martin, 1998. "What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences," RBA Annual Conference Volume (Discontinued), in: Guy Debelle & Jeff Borland (ed.),Unemployment and the Australian Labour Market, Reserve Bank of Australia.
    2. Viktor Steiner & Katharina Wrohlich, 2005. "Work Incentives and Labor Supply Effects of the ‘Mini-Jobs Reform’ in Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 91-116, March.
    3. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2002. "Aktivierende Sozialhilfe - Ein Weg zu mehr Beschäftigung und Wachstum," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(09), pages 03-52, May.
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    Cited by:

    1. Jorgensen, Henning, 2009. "Flexible labour markets, workers' protection and the "security of the wings": a Danish flexicurity solution to the unemployment and social problems in globalized economies," Macroeconomía del Desarrollo 5443, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Colin C. Williams & Ioana Alexandra Horodnic, 2017. "Tackling Bogus Self-Employment: Some Lessons From Romania," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-20, June.
    3. Anne Albert-Cromarias, 2010. "Penser La Flexicurité Au Niveau « Méso » : Entre Ancrage Territorial Et Innovation Sociale," Post-Print hal-02363602, HAL.
    4. Dagmara Nikulin & Małgorzata Gawrycka, 2021. "Implementation of the Concept of Flexicurity in the Selected Countries of Central Eastern Europe," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 118-141.
    5. Gundogan, Naci, 2009. "Can Denmark’s Flexicurity System Be Replicated In Developing Countries? The Case Of Turkey," MPRA Paper 17470, University Library of Munich, Germany.
    6. Schulze Buschoff, Karin & Protsch, Paula, 2007. "Die soziale Sicherung von (a-)typisch Beschäftigten im europäischen Vergleich," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-105, WZB Berlin Social Science Center.
    7. Francisco J. GRACIA & José RAMOS & José María PEIRÓ & Amparo CABALLER & Beatriz SORA, 2011. "Job attitudes, behaviours and well-being among different types of temporary workers in Europe and Israel," International Labour Review, International Labour Organization, vol. 150(3-4), pages 235-254, December.
    8. Jennifer Ferreira, 2016. "The German temporary staffing industry: growth, development, scandal and resistance," Industrial Relations Journal, Wiley Blackwell, vol. 47(2), pages 117-143, March.
    9. Dagmara Nikulin & Małgorzata Gawrycka, 2021. "Implementation of the Concept of Flexicurity in the Selected Countries of Central Eastern Europe," Ekonomista, Polskie Towarzystwo Ekonomiczne, vol. 1, pages 118-141, January.
    10. Lehwess-Litzmann, René, 2012. "What Does Flexicurity Have to Gain from the Capability-Approach?," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(2), pages 119-139.

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