"Belgium's systems of unemployment insurance and employment protection legislation were set up in the context of typically enduring and stable relationships between workers and firms. Economic globalization and rapid technological and organizational change, however, are now demanding more flexibility of both workers and firms. As a result, current labour market institutions are in urgent need of reform to reconcile such increased flexibility with adequate security for workers. Though the call for a “flexicurity” approach is not new, there is no single view of what institutional model the latter implies. This paper proposes a reform explicitly guided by economic principles."

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