"This essay presents various possible welfare state policies based on the concept of reciprocity. Some ideas about how to let older workers continue participating in later life are also discussed. But reciprocity included in the so called “active labour market policies” forms the core of the article. Such policies are not necessarily popular among unions and progressives, but much can be done about this if active labour market policies are regarded as policies where “reciprocity” entails that government must provide a qualitative upgrading service, generous benefits and fair opportunities for all. By contrast, policies perceived as pure “workfare”, close to the so-called “Wisconsin” model, fail to meet the standards of reciprocity, since every recipient is conceived as a potential free rider, who must basically be controlled by welfare state officials and forced back to work as soon as possible or face loss of benefits, regardless of upgrading or job availability, or face loss of benefits. The article makes the case for reciprocity in this specific field for two reasons. First, conditionality can deliver higher employment, a better skilled workforce and a clear welfare contract to underpin flexible labour markets. Second, placing conditions on the receipt of benefits imbues the welfare system with a sense of legitimacy that is crucial for maintaining public consent for out-of-work benefits"

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