Flexicurity models and productivity interference in C.E.E. countries: a new approach based on cluster and spatial analysis

Abstract

The research conducted within this paper focuses on the basic coordinates of flexicurity models for ten E.U. Member States in Central and Eastern Europe (C.E.E.), both through the efforts performed nationally within the framework of flexibility and security as well as by the flexicurity states, and effects on workers and the overall economic activity. The aim is to form clusters that will group the analysed countries according to their performances achieved under three basic flexicurity dimensions: external numerical flexibility, income security, and employment security. The results show that the C.E.E. countries have adopted different flexicurity models and associated measures, some focusing on improving flexibility by softening the employment protection legislation or designing flexible working arrangements, while others are concentrating more on employee protection with tight employment regulations (associated with relatively high degrees of income security) with different performances in terms of flexicurity output (states and effects) and labour market outcomes. The impact of various flexicurity measures upon labour productivity in C.E.E. countries is also extremely significant, being largely discussed within the paper.

Keywords:

• Flexicurity
• labour productivity
• employment protection
• unemployment benefits
• labour market policies

JEL Classifications:

• J08
• J24
• J81
• O10
• F63