ABSTRACT
This chapter reviews the changes to the Danish flexicurity model and active labour market policy (ALMP) that have occurred since the New Millennium, and brought special attention to the implications these changes have for street-level work in the Danish employment system. It explores the changes by use of institutional theory and discusses stability and change in political economies. The severance pay schemes are linked to the level of unemployment compensation and make redundancies more costly, hence the model's flexibility dimension has also been affected. The dismantling of the Danish flexicurity model has, of course, considerable implications for Danish wage earners and unemployed persons. The academic literature inspired by the varieties of capitalism approach suggests that Denmark's somewhat hybrid flexicurity model exemplifies the latter definition of institutional complementarity. ALMP was originally introduced by the Social Democrat-led government in the mid-1990s as part of a broadly based effort to combat unemployment.
