Aliki Mouriki
assess both the flexibility and the security dimension of labour market reforms. 5 They point out that
this matrix is static and simplistic, as it does not represent the possible interrelationships between the
different types of flexibility and security: the flexibility gains of employers do not necessarily entail
a loss of security amongst the employees; similarly, security gains of employees do not necessarily
mean a loss of flexibility for employers (as is the case of job security which enhances loyalty to the
company and internal functional flexibility). Other combinations, however, can be “lethal”, as for
example, when the relaxation of hiring and firing regulations can lead to an overall insecurity that
has negative consequences on aggregate demand and even fertility. Hence, whether the outcome of
the possible combinations between flexibility and security will be a trade-off, a mutually beneficial
arrangement or a “vicious relationship” as they call it, will depend on the prevailing particular labour
market and individual circumstances. To their view, the transitional labour markets framework pro-
vides a more dynamic insight to assess the impact of reforms, in terms of efficient and equitable
flexicurity criteria.
To reinforce the arguments put forward by the above critique, one could add that it is not at all
obvious whether, under any circumstances, flexibility is always harmful for the employees and that se-
curity always constitutes an unbearable cost for employers. It may well be the case that a higher degree
of flexibility can enhance labour productivity and firm competitiveness and thus save jobs that would
otherwise have to be shed. Or, inversely, that —in a context of intensified international competition-
the ultimate outcome of less flexibility is less security for the workforce. 6 Additionally, it is often the
case that in times of uncertainty, a secure workforce can feel more committed to its job and highly
skilled employees might be less tempted to venture for another job. To this end, one might consider a
5 For consistency purposes, the authors suggest two modifications in the terminology used in the Wilthagen
& Tros matrix: (a) wage flexibility is re-named as ‘external numerical flexibility’, which is achieved through
wage flexibility, out-sourcing and high quality temporary agency work; (b) combination security is coined
as ‘option security’, in order to give it a broader meaning that includes civic engagement and further educa-
tion.
6 For example, a high degree of employment protection or the prevalence of rigid patterns of work organisation can
drive a firm out of business and its workforce to the dole. Alternatively, it can drive a firm to outsource part of its
activities and/or have a greater recourse to unstable and precarious workers in order to circumvent restrictions, thus
deepening labour market segmentation.
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