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)| false Wilthagen, T., T. Frank, and H. van Lieshout, 2003, “ Towards ‘Flexicurity’?: Balancing Flexibility and Security in EU Member States,” paper presented at the 13th World Congress of the International Industrial Relations Association (IIRA), Berlin, September.
I am grateful for helpful comments from Torben Anderson, Søren Gaard, Paul Hilbers (who suggested this topic), Ole Hollensen, Olivier Jeanne, Alessandro Leipold, Per Kongshøj Madsen, and the seminar participants at the IMF and the Danish National Bank. I would also like to thank Constanze Schulz-Calle La Rosa for excellent assistance. An early version of this paper was included as a chapter of the IMF Country Report No. 06/342, Denmark: Selected Issues, October, 2006.
This can be seen as job flexibility from the workers’ perspective—for example, the possibility to take long-term maternity leave with the guarantee of reemployment. In this context, this type of security can be key to female participation and employment.
It should be noted that adding the social security contributions by employers (SSCs) would further raise the tax wedge, but more so for some other countries, as SSCs in Denmark are relatively low.
It is assumed that a large part of the funding comes from labor income taxation and social security contributions, which widen the wedge.