"The dominant view in economics is that increasing demands for flexibility on the labour market jeopardizes employment security. However, against the prediction of a negative relationship or a`trade-off' between flexibility and security, there is evidence for a positive, mutually reinforcing relationship known as the `flexicurity' thesis. Using comparative panel data for 14 European countries, we elaborate dynamic outcome indicators for flexibility and employment security to assess the differences across countries and welfare regimes in balancing the two.We estimate transition models to explain the observed mobility patterns.The outcomes confirm the impact of the institutional set-up indicated by regime type on these transitions supporting the `variety of capitalism' approach.The regulated Southern and Continental regimes perform worst and the unregulated Anglo-Saxon and Nordic regimes best in attaining high levels of flexibility and employment security simultaneously, though for both regimes with a small loss either in flexibility or in security."

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