public policy and european society university of castellanza session #2(b) blocked societies? the...
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Public policy and European society
University of Castellanza
Session #2(b)Blocked Societies?
The crisis of continental corporatism and the success of the Scandinavian model
11 November 2009
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Outline
Euroscelorosis?» Europe has less people at work than the USA –lower
employment» But some European societies have very high levels of
employment Blocked societies (France, Germany, Italy)
» Low employment, inflexible labour markets Scandinavian success
» High employment, flexible labour markets and high social welfare!
France as new model?
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‘Euroscelerosis’: Fewer Europeans than Americans at work
Employment ratePercentage of potentially active population who have some job.Activity rate: Percentage of potentially active population who are at work or looking for work.Unemployment rate:Percentage of actually active population who are without a job.NB Definitions!
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Lisbon Declaration
Lisbon targets» 70% overall employment» 60% women» 50% older workers
‘Arbeit macht frei?’» But many societies and groups have ‘chosen’ low
employment rates, sometimes with high productivity Economic citizenship
» justifies employment» ensures work compatible with social reproduction
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Employment rates 1997-2006
50.0
55.0
60.0
65.0
70.0
75.0
80.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
EU27
Germany
France
Sweden
Denmark
Italy
Greece
Ireland
UK
Source: Employment in Europe 2007
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Overall participation
Divergence greatest in core age group Two extremes:
» High Scandinavia, low Mediterranean
Activity rate:
% of populatation 15-64
Activity rate % of pouluation aged 25-54
France 62.7 78.7
Germany 64.2 78.0
Italy 47.9 60.3
Sweden 75.8 85.5
UK 68.3 76.4
EU15 60.9 73.2
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Employment statuses 2006
0%
20%
40%
60%
80%
100%
UK Denmark Italy France
Employed Unemployed Inactive
Full-time or part-time
Home duties
Studying without part time work
Early retired
Prison (Important in USA)
Source: Employment in Europe 2007
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Forms of women’s participation
Countries with high overall participation have very different forms of participation Deregulated labour markets = ‘bad’ jobs?
Part time as % all employment
Hours worked: difference- households with and without children
Marginal part-time as % all dependent employees
France 29.4 -1 9
Germany 36.4* -3.3 18
Italy 16.9 +2 8
Sweden 33.1 +0.1 6
UK 43.9 -6 21
EU15 33.5 -3.4** 14**
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Three worlds of welfare – and ‘defamiliasation’
Liberal regime» Market solutions» Deregulated labour market-» Immigrant caring labour» Part-time and temporary work for women
Social democratic» Extensive care services:» Good low skill employment» Enable women to leave home
Conservative/ corporatist» Subsidiarity so family important» Insurance based benefits» Priority of full-time work
Mediterannean (?)» As conservative but incomplete coverage
Which countries?
UK and Ireland
Scandinavia
France and Germany
Italy, Spain, Greece…
New member states?
Changes?
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Employment Protection Legislation – laws that make it difficult and/or expensive for employers to dismiss employees
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Blocked societies
Insider/outsider labour markets» Low employment rates» High unemployment» High youth unemployment
Ineffective third level education» Disconnection from labour market (low returns to education)» Long duration» Low research
And in Italy:» Low female employment » Corruption
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A new France?
Nicholas Sarkozy Ségolène Royal
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Scandinavian flexicurity
Flexicurity•Activation•Retraining and life-long learning•Protect the worker, not the job•Low Employment ProtectionResults•High employment rate•High job mobility (‘flexibility’) and effective job search•Firms can innovate without employment problemsBUT needs high trust and is expensive!
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Scandinavian successes
Family and social services– Extensive good quality services (especially childcare) enable
women to participate in employment by moving ‘women’s jobs’ outside the home
– Social services provide good quality caring jobs (largely for women)
– Contributes to relatively high birth rate and egalitarian household division of labour
– BUT public sector/private sector gender divide High and continuing education
– High overall levels of education (no US or UK ‘tail’) – The basis for innovative enterprises through links to commercial
R&D– Creates flexible workforce
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New strength of ‘Continental’ ‘conservative regimesExtensive automatic stabilisers (welfare)Acceptance of state regulation and intervention
A continental solution?