Flexicurity of the Labor Market through the Formal/Informal Duality, in the Context of Globalization

Abstract

The new stage of globalization, marked by deeper integration of work, creates new opportunities, both in terms of economic growth and job creation, but at the same time creates new challenges and problems in the labor market, such as: increasing labor market flows, exposing jobs to increased global competition and segmenting the labor market in formal and informal terms. It is known that the main feature of the informal labor market, whether we are talking about a developed economy or a developing economy, is flexibility, and the essential feature of a formal labor market is security. In any labor market, there is an increasingly fierce struggle between employers, who want more flexibility and employees, who want more security. Thus, was born the concept of "flexicurity". This paper aims to approach the flexicurity of the labor market through the formal / informal duality in the current context of globalization and to show the optimal combination of job flexibility and the security of the workers, who occupy those jobs.