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IZA Journal of Labor Policy

, 1:7

First Online: 29 November 2012Received: 04 September 2012Accepted: 07 October 2012


A major labour market challenge following the Great Recession is to avoid an increase in long-term unemployment and thus the structural unemployment rate. Active labour market policies may play an important role in this respect. We consider these issues with outset in Denmark which is a country relying extensively on active labour market policies. It is also characterised by high flows into and out of employment, implying that most unemployment spells are rather short and the unemployment rate is relative low. These features have been maintained despite the crisis, and in this sense the Danish flexicurity model has coped reasonably well with the crisis. The Danish active labour market policies have been continuously changed in light of experience, new knowledge and changes in the labour market situation. This paper reviews and discusses these changes in light of the recession and considers how the labour market has coped with the recession.

KeywordsActive labour market policy Long-term unemployment Great recession J60 J38 E32 Electronic supplementary materialThe online version of this article doi:10.1186-2193-9004-1-7 contains supplementary material, which is available to authorized users.

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Autor: Torben M Andersen - Michael Svarer


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