18 May 2015

The labor market regimes of Denmark and Norway – One Nordic model?

The labor market systems of the Nordic countries are often considered to be very much alike. This perception is challenged in the new scientific article, published in Journal of Industrial Relations, "Labor Market Regimes of Denmark and Norway - A Parting of the Ways?". In cooperation with scientist at Norwegian School of Economics, Steen E. Navrbjerg points out that multinational companies' staffing changes differ quite a lot from one another. the analysis shows that the differences are due to institutional differences regarding rules on employee involvement. The Norwegian system is more strict than that of Denmark - examplified by the Danish flexicurity-model which grants Danish employers great latitude recruitment-wise. When it comes to information and involvement the Norwegian demands are also bigger due to them being regulated legislatively. This leads the multinational companies to practise diverging staffing policies in the two countries. The analysis thereby underlines that the notion of one common Nordic model for labor market regulations is problematic.

The article has been published in Journal of Industrial Relations.

Read the abstract or go straight to the entire academic research paper.