the future of work what opportunities for vox europe?of+work.pdf · the future of work what...
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VOXINCUBATOR
TheFutureofWork
WhatOpportunitiesforVOXEurope?
APolicyPositionProposal(3P)forVOXEurope
KonradvonRitterandGuidoSilvestri
Draft,October6,2017
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ABSTRACT
KeyRecommendationsDigitalization,globalization,anddemographicchangesaretransformingthenatureofworkandlabormarkets.ThisofferschallengesandopportunitiesforEurope.Inordertomanagewellthetransitiontowardsthe‘FutureofWork’,theEUwillhavetoundertakegreateffortstoalsobecomea‘SocialUnion’.
VOXadvocatesanEUwide“MarshallPlanonWorkandLife-longEmployability”asoneprogramtoputsuchSocialUnionintopractice,withthefollowingcomponents:
• FlexibilityandWork-LifeBalance
VOXsupportsaWorkingTimeChoiceActandbecometherecognizedpoliticalvoiceforthegrowingnumberofself-employed,start-ups,crowdandgigworkers.
• Life-longLearningforEmployability
VOXsupportsastrategytomove‘FromanUnemploymenttoanEmploymentInsurance’withare-orientationtowardsapreventiveschemefocusedonmaintainingemployability.
VOXadvocatestheimmediateadoptionof‘ErasmusPro’,aEuropeanapprenticeschemetofund200,000two-yearlongapprenticeshipsayear.
VOXEuropesupportsIndividualLong-TermAccountsthatsupportlife-longeducation,boostedbyaperiodicBonusforlive-longlearningandre-training.
• SocialProtectionandBasicIncomeVOXenvisionsuniversalsocialprotectionandanadequateincometobecomeacorepillarofEUPolicymaking.Thisrequiresalong-termperspectivecombinedwithshort-termactions.VOXadvocatesthestrengtheningofexistingGuaranteedMinimumIncome(GMI)schemesacrosstheEU,initiallywithatleastamodestgoalofconvergingonaminimumpovertythresholdof40%oftheequivalentnationalmedianincome(„extremepoverty“),withtheschemesconditionednotonlyonatraditionaljobsearch,butalsoonapossibledevelopmentofanewbusinessorevenan(unpaid)socialactivity(likementorship,etc.).VOXendorsestheideaofaStartCapitalforeveryyoungpersonintheEU.SuchstartcapitalcanbeseenasaSocialInheritance,thatenablesayoungpersontodevelopitstalents,choseacareerorstartupabusiness,independentlyofthesocialstatusandwealthoftheparents.VOXsupportslargescaleexperimentswithunconditionalbasicincome(UBI),toprovideasolidknowledgebasistodecideonthemeritsofthisnovelapproachtosocialprotection.
VOXEuropehastheopportunitytoprofileitselfasanadvocateforaEuropeanapproachtoSocialDevelopment,withpracticalminimumstandardsofsocialprotectionandofdecentworkandpay,leadingtowardsasuccessfuldigitaltransformationwhichcontributesbothtogreaterprosperityandbetterworkingconditionswithintheEU.
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PolicySummary
BuildingBlocksforVOXPolicyPositionsintheFieldof‘FutureofWork’
Thispaperaddressesthetopic‘FutureofWork’andidentifiesthepoliticalspace,VOXmaywanttooccupyinthisfield.ItisafirstdrafttobereviewedanddiscussedattheVOXPartyAssemblyinBerlininOctober2017foradaptation,afterappropriatechangeshavebeenmade,aspartofVOX’spartyprogram.
Digitalization,globalization,anddemographicchangesaretransformingthenatureofworkandlabormarkets.ThisofferschallengesandopportunitiesforEurope.Involuntaryunemploymentduetostructuralchanges,inparticularyouthunemployment,isatanalarminglevelandposesadramaticthreattosocialcohesionintheEUandamajorityofitsStates.Atthesametime,peopledesiringmoreflexibilityfortheirwork-lifebalanceandforself-employmentfindevergrowingopportunitiestoarrangetheirlifeaccordingly.
TheEUinfluences,andisbeinginfluencedbythistransformationatmanylevels.Sofarthisinfluencehasbeenprimarilyattheeconomiclevel:asafreetradezone,asacurrencyunion,andasemergingfiscalandbankingunion,butalsoasafreemovementoflaborzone,andforsome,asafuturepoliticalunion.
Inordertomanagewellthetransitiontowardsthe‘FutureofWork’,theEUwillhavetoundertakegreateffortstoalsobecomea‘SocialUnion’,asalreadyoutlinedintheEuropeanThirdPillarofSocialRights.
Itisonthisbasis,thatVOXadvocatesanEUwide“MarshallPlanonWorkandLife-longEmployability”,asoneprogramtoputsuchSocialUnionintopractice.StrengtheningthesocialdimensionoftheEUisnotjustafiscalburden,assomemayseeit,butanessentialinvestmentinshort-termpovertyalleviationandlong-termcohesion,acceptability,andstabilityoftheEU.1
Inthiscontext,thispaperlooksatthreespecificareaswhichwouldbeessentialcomponentsofsuch‘MarshallPlan’andproposesforeachareapositionswhichVOXmaywanttoadopt:
A. FlexibilityandWork-LifeBalance.VOXEuropehastheopportunitytovigorouslyengagewithanewgenerationofworkingpeople,youngandold.Thisisagrowingpopulationwithalongerlife-expectancywhovoluntarily,orforcedbychanginglabormarkets,liveamoredynamicworklife,changingemployers,shiftinginandoutofself-employment,undergoingseveralcyclesoftrainingandre-training,demandmorenon-workingtime,andaboveall,moresovereigntyorcontrolovertheirtime.
Hence,VOXEuropeshouldfullyembracetheagendaasoutlinedintheproposalforaWorkingTimeChoiceAct,includingthebalancingofworkersandcompanies’flexibility
1Cf.Rinaldietal.,2016
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needs.Particularattentionshouldbegiventothegrowingnumberofself-employed,start-ups,crowdworkers,whicharenotyetwellrepresentedpolitically,andforwhichVOXcouldbecometherecognizedvoice.
B. Life-longLearningforEmployability.VOXEuropepromotesmeasureswhichresultinhighemploymentandcontinuedemployabilityforEuropeancitizens,amidstprofoundstructuralchangesintheeconomyandsociety.Withthisintention,VOXsupportsabroadstrategytomove‘FromanUnemploymenttoanEmploymentInsurance’withare-orientationtowardsapreventiveschemefocusedonmaintainingemployability.
VOXEuropeadvocatestheimmediateadoptionof‘ErasmusPro’,aprogramtoincreaseopportunitiesforyoungpeopletoenterthelabormarketcombinedwitha‘EuropeanExperience’.Duringafirstphase,adedicatedbudgetofroughly€5 billion,wouldfundayoungEuropeanapprenticeschemethatisabletoprovide200,000two-yearlongapprenticeshipsayear2.SuchinitiativeisverysignificanttobuildappreciationfortheEuropeanideaamongayoungpopulationthatisnotreachedbytheacademicallyorientedErasmusprogram.
VOXEuropesupportsIndividualLong-TermAccountsthatsupportlife-longeducation,boostedbyaperiodicBonusforlive-longlearningandre-trainingtoprovidefinancialsupportandtimetoabroadergroupofworkers,includingfromsmallandmediumenterprises,tomaintaintheiremployability.TheBonuswouldcomethroughthecompanyandbefundedbyequivalentlowertaxesonlabor,or,incaseofunemployment,directlybythestate.Thebonuscouldbespentonawiderangeoflearningopportunitiesatthechoiceoftheindividual,includingcourses,internships,hands-ontrainings,whichenhanceemployabilityandareendorsedbythecompanyorthestate.Aceilingforthebonuswouldneedtobesetcountrybycountry(e.g.€6’000every5years).
Morebroadly,VOXEuropesupportsmeasurestomaketheEuropeanlabormarketmoretransparent,includingsettingupanEU–wideeffectiveLaborMarketInformationService.Whilelabormobilityislegallyenshrined,italsotakesdetailedinformationaboutskillneedsandjobopportunitiesinparticularregions,toenableworkerstobenefitfromanintegratedlabormarketacrossnationalandlanguagebarriers.
C. SocialProtectionandBasicIncome.Intimesofmassivechangesinlabormarketsandtheemergenceofnewmodelsofworking,itiscrucialtoadjustthemechanismsofsocialprotectionthatwerebuiltaroundtraditionalformsofemployment,inordertoprovideabasicincomethatguaranteesdecentlivingstandardsandcontributestomaintainingpoliticalandsocialcohesion.
VOXenvisionsuniversalsocialprotectionandanadequateincometobecomeacorepillarofEUPolicymaking.Thisrequiresalong-termperspectivecombinedwithshort-termactions.
Intheshortterm,VOXadvocatesthestrengtheningofexistingGuaranteedMinimumIncome(GMI)schemesacrosstheEU,initiallywithatleastamodestgoalofconvergingon
2Cf.Delorsetal.,2015
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aminimumpovertythresholdof40%oftheequivalentnationalmedianincome(“extremepoverty”).Afundcouldbeestablished,financedattheEuropeanlevelandbyMemberStates,whereeachwouldcontributeinlinewithitsnationalwealth.Sucheffortseemseconomicallyandpoliticallybearable,consideringthelimitedsolidarityrequiredbetweenstates.Accesstotheminimumincomewouldbeconditionednotonlytoatraditionaljobsearch,butalsotoadevelopmentofanewbusinessorevenan(unpaid)socialactivity(likementorship,etc.).Theseschemescanplayavitalroleinalleviatingtheworstimpactsofpovertyandsocialexclusioninmanycountries.Inaddition,itcanwellencouragefinancialindependenceandself-responsibility.
Inparallel,VOXEuropeadvocatesinnovationinsocialprotectionschemes,thatarepreventiveandempowerpeopletobebetterequippedtoadapttorapidchangesimposedbyinnovation.
VOXendorsestheideaofaStartCapitalforeveryyoungpersonintheEU.SuchstartcapitalcanbeseenasaSocialInheritance,thatenablesayoungpersontodevelopitstalents,choseacareerorstartupabusiness,independentlyofthesocialstatusandwealthoftheparents.Someyoungpeoplemayalsosaveandgrowtheirstartcapitalforhavinglaterinlifethepossibilitytotransitiontopart-timeworkforeducationorfamilyreasons.
UnconditionalBasicIncome(UBI)isanewconceptofsocialprotection,de-linkedfromtraditionalemployment,thatisstirringacontroversialdebateandiscurrentlybeingtestedinfewEUstates.ToolittleisknownaboutUBItodecideonitsmeritsatthisstage.Therefore,VOXEuropesupportslargescaleexperimentswithUBIintheEU,andiseagertoanalysefindingsfromrigorousassessmentoftheirresults,includingaboutcosts,howtofinancethem,andabouttheeffectsonworkattitudes.
RecommendedApproach:PolicyLearningandRegulatedSelf-regulation
Developmentandimplementationofnewpoliciesforworkflexibility,lifelonglearningandsocialprotectionarealearningprocess,involvingbroadconsultations,debates,andexperimentation.
VOXEuropeadvocatesaPolicyLearningapproach.Manyaspectsofnewpolicies,includingtheireffectivenessandfutureimpact,includingunintendedside-effects,arenotfullyunderstoodorknown.Deliberatespacesforexperimentation(“Sandboxes”)areneededatthelevelofspecificcompaniesorselectsectors.Withinthesespaces,timeboundpilotscanbeundertaken,testingdifferentpolicyoptions,accompaniedbycarefulscientificmonitoring.Theattitudeisoneofdeliberaterisktaking,rigorousevaluation,andcouragetodropfailedeffortsafterastricttimelimit.ThiswillprovideanessentialfoundationtotheprofoundpolicyreformsneededforatransitiontowardstheFutureofWork3.
Giventhelargevarietyofworkerpreferences,companyneeds,andnationalcircumstances,thereisnomore‘typicalworker’or‘normalworkingcondition’.Itwillthereforebealmostimpossibletodeveloplawsandregulationsandofferingeffectivesolutionsforallpossiblesituations.Instead,policiesshouldstrive,whereappropriate,towardsaRegulatedSelf-regulation4,whichprovideslegal3Cf.BMAS,2017.Fromnowonquotedas‘Weissbuch’.4Weissbuch,p.120
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boundariesandbasicprotections,butleavesittothesocialpartnerstofindbalancedsolutionstotheirspecificsituation.Thosenegotiationswilltypicallybeofacollectivenaturebetweenworkersandemployers.Collectiveagreementswillgenerallystrengthenthenegotiationpositionofindividualworkers,inparticularthoseinunstableemploymentorself-employmentsituations.
StrategicPolicyOpportunityforVOXEurope:AdvocateforanEU‘SocialUnion’
ThedesiretostrengthentheEUtobecomeaneffectiveandtrustedfoundationforbuildingapeacefulandprosperouscommunityofEuropeancountriesunderpinstheinitiativeofcreatingtheVOXEuropepoliticalparty.
PublicattitudestowardtheEUareratherlacklusteratthismoment.ImplementationoftheEPSRthrougheffectivepoliciesatEuropeanlevelcouldgreatlyboostpublicsupportfor,andvisibilityof,theEU,andinspireanewsenseofcommunityandidentity5.).
TheSocialPillarcanalsobeseenasanecessarycomplementtothedevelopmentoftheEuropeansinglemarket,theintroductionofasinglecurrency,andthefreedominmovement.
VOXEuropehasheretheopportunitytoprofileitselfasanadvocateforaEuropeanapproachtoSocialDevelopment,withpracticalminimumstandardsofsocialprotectionandofdecentworkandpay,leadingtowardsasuccessfuldigitaltransformationwhichcontributesbothtogreaterprosperityandbetterworkingconditionswithintheEU.
5Weissbuch,p.185
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1 Contents 2 Introduction....................................................................................................................................9
3 Context:TransformationofLaborMarketsandtheWayWeWork.............................................10
3.1 Digitalization.........................................................................................................................10
3.2 DemographicChanges..........................................................................................................10
3.3 ChangingValuesregardingWork..........................................................................................11
3.4 Polarizationoflabormarketopportunities...........................................................................13
3.4.1 TherearesignificantdifferencesamongthestatesoftheUnion.................................13
3.4.2 Inequalityincreasedfrom2006to2011intwo-thirdsofEUMemberStates,withgrowingdivergence.......................................................................................................................15
3.4.3 Besideswages,capitalincomecontributedmosttorisingincomeinequality.............15
4 ChallengesandOpportunities.......................................................................................................17
4.1 Challenges:............................................................................................................................17
4.2 Opportunities:.......................................................................................................................17
5 EU–EuropeanPillarofSocialRights(EPSR)–aPointofReference..............................................18
6 VoxPrinciples................................................................................................................................20
7 StrategicPolicyAreas....................................................................................................................20
7.1 FlexibilityandWork-LifeBalance..........................................................................................21
7.1.1 Definition.......................................................................................................................21
7.1.2 Issues,TradeOffs,Tensions..........................................................................................21
7.1.3 PolicyOptions:WorkingTimeChoiceAct.....................................................................23
7.1.4 ProposedPositionforVOXEurope................................................................................25
7.2 LifelongLearningtoMaintainEmployability.........................................................................26
7.2.1 Definition.......................................................................................................................26
7.2.2 Issues,TradeOffs,Tensions..........................................................................................26
7.2.3 PolicyOptions................................................................................................................28
7.2.4 ProposedPositionforVOXEurope................................................................................32
7.3 SocialProtection:MinimumGuaranteedIncome(MGI)andUniversalBasicIncome(UBI).33
7.3.1 Definitions.....................................................................................................................33
7.3.2 Issues,TradeOffs,Tensions..........................................................................................34
7.3.3 PolicyOptions–UnconditionalBasicIncome(UBI).......................................................35
7.3.4 PolicyOptions-GuaranteedMinimumIncome(GMI)..................................................42
7.3.5 ProposedVOXPosition..................................................................................................46
8 Conclusion.....................................................................................................................................48
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9 Annexes.........................................................................................................................................50
9.1 Annex1:EuropeanPillarofSocialRights..............................................................................50
9.2 Annex2:LegalRegulationsontheOrganizationofWorkingTime:TheEuropeanWorkingTimeDirective...................................................................................................................................55
9.3 Annex3:SurveyonEuropeanAttitudestowardsUnconditionalBasicIncome....................57
10 ListofReferences..........................................................................................................................65
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2 Introduction
ThepurposeofthispaperistosupportthedevelopmentofapoliticalpartyprogramfortheemergingVOXEuropeParty.
Thetopicofthispaperisthe‘FutureofWork’.Thisisanimmenselybroadtopic,andthispaperdoesnotclaimtoofferacomprehensivetreatmentofthesubject.
Hence,theapproachtothispaperisselective,withtheintentionto:
• Identifypolicygaps,i.e.areasofemergingimportanceattheEUlevel,forwhichpoliciesstillneedtobeformulated,andwhichofferVOXanopportunitytogainadistinguishingprofile;and
• Identifypoliticallyunderservedorunder-representedtargetgroups,affectedby,orinvolvedin,thetransformationoflabormarkets,forwhichVOXmaybecomeanattractivevoiceinthepoliticallandscape.
Inthoseareasandforthosegroups,thispaperscansthepoliticallandscapeandsignificantactors,identifiesmajortrends,keyissues,andtheprincipalideas,onhowtoaddressthem.ItthendiscussesoptionsfortheVOXPartytopositionitselfandrecommendsapolicystand,fordebateandadoptionbythepartymembers.ThisfirstdraftdrawsheavilyontheWhitePaperWork4.0,theresultofabroadconsultationprocessinGermanyorganizedbyitsMinistryofLaborandSocialAffairsandkeystudiesbytheEuropeanUnion.Throughoutfullsectionshavebeencopied,whereitseemedconceptuallyrelevant.Thefindingsandrecommendationsmustthereforebecriticallyreviewedwithaviewtotheirrelevancetoothercountries,and/ortheirvalidityasdesirable‘futureofwork’,andhencepolicydirectionsforVOXEurope.
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3 Context: Transformation of Labor Markets and the Way We Work Labormarkets,andmorebroadlythewaywework,areundergoingaprofoundtransformation.Keydriversforthistransformationinclude:
3.1 Digitalization Newtechnologieshavethepotentialtoupendmuchofwhatweknowaboutthewaypeoplework.Butdisruptionisanopportunityaswellasachallenge
• Proportionofoccupationthatcanbefullyautomatedisactuallysmall–lessthan5percent…• Partialautomationwillaffectalmostalloccupationstoagreaterorlesserdegree…• About60percentofalloccupationhaveatleast30percentofactivitiesthataretechnically
automatable…• Onaglobalscale,…theadaptationofcurrentlydemonstratedautomationtechnologycould
affect50percentoftheworldeconomy,or1,2billionemployees.6
Thereisawidedebatewhethernewtechnologiescreateordestroyjobsonaglobalbasis.However,thepointisthattheyareforsuredisruptiveandataspeedunknownsofar.Overallcommunitiescanbeimpacted,withnoexceptionbygeography,orindustry,orage,etc.Thesecommunitiesneedanswersandperspectivesinameaningfullifehorizon,thatmeansalsointheshort-term.
3.2 Demographic Changes
Oneofthenotablechangesinthelabormarketsisthegrowingparticipationofolderpeopleintheworkforce.Generationaldiversitywilllikelycontinuetodefinetheworkforce,witholderworkersrepresentingoneofthefastest-growingsegments.Providingtargetedtrainingsolutionsthatmeettheirneedsandlearningstylescanbeimportantinensuringcontinuedproductivitythroughoutaworker’scareer.Researchshowsthatyoungerandolderadultshavesomewhatdifferentlearningstyles.Therefore,organizationsshouldconsiderputtingdevelopmentprogramsinplacetomeetthesevaryinggenerationalneeds.
6Cf.Manyika,2017
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AgeingPopulation
3.3 Changing Values regarding Work
Thereisagrowingdiversityinvaluesandexpectationstowardswork.Nexttosecurityandgoodremuneration,morecontrolovertimingofwork(‘timesovereignty’)isemergingasanimportantadditionalpriorityamongworkingpeople.
Thegraphbelow7offersacategorizationofthisrangeofexpectations,withinafieldoffourcorevalues:Stability–Performance–PersonalDevelopment–CommonGood.Thesecorevaluesmaypartiallycompetewitheachother(e.g.prosperitythroughhighincomevsmeaningfulnessthroughjobsdedicatedtocommongood,butpoorlypaid.)
7Weissbuch,p.35
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Furthermore,theperceptionsofwhatisadesirablefutureandwhatnot,canbediametricallyopposed:whatiscomfortingstabilitytosome,canbeboringconformitytoothers,andwhatisstrivingfortopperformancetosomemaybefeltasstruggleforexistencetoothers.
Asthefollowinggraphillustrate,thereisnohomogeneitybutawiderangeofvaluesshapingthefutureworldofwork.
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3.4 Polarization of labor market opportunities
Theworldofworkisinastateofflux,whichiscausingconsiderableanxiety—andwithgoodreason.Thereisgrowingpolarizationoflabor-marketopportunitiesbetweenhigh-andlow-skilljobs,unemploymentandunderemploymentespeciallyamongyoungpeople,stagnatingincomesforalargeproportionofhouseholds,andincomeinequality.Migrationanditseffectsonjobshasbecomeasensitivepoliticalissueinmanyadvancedeconomies.AndfromMumbaitoManchester,publicdebateragesaboutthefutureofworkandwhethertherewillbeenoughjobstogainfullyemployeveryone.8
PolarizationshowsupalsoinEurope:
3.4.1 There are significant differences among the states of the Union
Itisveryimportanttoincreaseconsciousnessofthedifferentstatusquoofthememberstates.
Amongothers,thisisevidentforinstancewhenwelookatUnemploymentrateintheUnion:
8Cf.Manyika,2017
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Source:Eurostat–Aug2017
DivergenceinUnemploymentrates(2002–2013),%9
9Cf.EuropeanCommission,2015
Note:EU-15Center:Belgium,Luxembourg,theNetherlands,Germany,Finland,France,Austria;EU-15North:Denmark,Sweden,UnitedKingdom;EU-15South:Greece,Ireland,Portugal,Spain,Italy;EU-13North:CzechRepublic,Hungary,Poland,SloveniaandSlovakia;EU-13South:Bulgaria,Cyprus,Estonia,Latvia,Lithuania,Malta,Croatia,Romania.
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OneofthemostseriousdivergencesbetweenEuropeancountriesthatthecrisisandtheyearsfollowingithavehighlightedisthatthereareseriousgapsinthesocialwelfaresystemsofmanyEuropeancountries,whichoftenleavepeoplewhoareunemployedorlong-termunemployedwithlittleornosafetynetandcausegreathardshipinsomecountries,typicallyintheSouth.TheEuropeanCommissionhasnotedthatsomeoftheMemberStatesthathavebeenmostresilientduringthecrisishavehighlevelsofemploymentprotectionlegislation,particularlyGermany,Sweden,theNetherlandsandtheCzechRepublic(2015a).10
3.4.2 Inequality increased from 2006 to 2011 in two-thirds of EU Member States, with growing divergence
TheanalysisusingEU-SILCmicrodatashowsthatbetween2006and2011,inequalityhasincreasedinapproximatelytwo-thirdsoftheEUcountries…,decreasingintherest…Anadditionalfindingisthatinmostcountriesinequalityhasincreasedinthebottompartofthedistributionandnotonlyinthetoppartaspredictedbytheliterature.11
Whenincomeinequalityisexamined,thereisconcernaboutthewidedispersionandgrowingdivergenceininequalitybetweenmemberstates(EuropeanCommission2013).Theincomeinequalityrate(S80/20indicator)increasedin16memberstatesanddecreasedin5(stayingstaticintheremaining7countries)between2013and2014…
3.4.3 Besides wages, capital income contributed most to rising income inequality
Whenanalyzingtherelativecontributionofchangesininequalityofthefollowingcomponents:
• incomefrompaidemployment,• incomefromself-employment,• transfers,• otherincome(mainlycapital),and• taxes
Theobtainedevidenceshowsthatalthoughthemostimportantcomponentofincomeinequalityiswageinequality,theincomesourcethathascontributedmosttotheincreaseinoverallincomeinequalityiscapitalincome,whiletaxeshavecontributedtodecreasingincomeinequalityandtransfershavebeenneutral.12
10Cf.Healy,201711Cf.Dregeretal.,201512Ibid.
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Thesenseofurgency
Thispolarizationoflabormarketopportunitiesisoneofthemainthreatstothesocialcohesion,andtotheadhesiontotheEuropeanideals.Itfosterspopulistreceiptstothepeoplediscontentandamplifytheissuesrelatedtoimmigration.
23 millionjoblesspeople,ofwhich12 millioninlong-termunemployment,representacatastropheforEurope;daybydaythisleadstoadestructionofhumancapitalwhichisdetrimentaltotheEuropeanproject,tothewellbeingofEuropeanpeopleandtothecompetitivenessofEuropeaneconomies.Nonetheless,thereisnoapparentsenseofurgencytoactfortheprotectionandrecoveryofEuropeanhumancapital.13
13Cf.Rinaldietal.,2016
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4 Challenges and Opportunities Thetransformationoflabormarketsbringswithitnewchallengesandopportunities.
4.1 Challenges: • ForWorkers:
o InvoluntaryUnemploymentoverextendedperiodsduetostructural(e.g.decliningsectors)andtechnologicalchanges(e.g.automatization)reducingdemandforlaborincertainsectorsandmakingprofessionsobsolete.(ENDOFWORKDEBATE)
o Ongoingpressuretoupgradequalityofskillsandtrainingtomeetrisingqualificationexpectations
o Periodicpressurestore-orientprofessionalqualificationstoadjusttostructuralchanges
o Reducedjobsecurityduetolessstablecontractualarrangements.o Limitedsocialsecuritycoverageduetomorefrequentchangesorparttime
employmentsituations.
• ForBusiness:o Laborshortageofqualifiedworkers,inselectsectorsasaresultofdemographic
changewithanageingpopulation.o Pressureformoreefficiencycostcuttingfromincreasedinternationalcompetition.o Pressurefromconsumersforquickerturnaroundanddeliverytimesandfor
customizeddesigns.
4.2 Opportunities: • Forworkers
o Digitalizationoffersnewpossibilitiesforincreased‘timesovereignty’,i.e.influenceonhowmuchtimeandwhentowork.Demandformoretimesovereigntyisinpartdrivenbyvoluntaryshiftstowardsnewwork-lifemodels,tradingreducedincomeforadditionalself-determinedtime.
o Increasedlocationflexibility,i.e.choiceofworkingfromhome,remoteoffice,orcommonoffice.
• ForBusiness:o Flexibleworkingarrangementsallowtoattractadditionalworkerstothelabor
market(youngparents),orkeepqualifiedandexperiencedlaborforlongerperiods(e.g.olderpeople).
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5 EU –European Pillar of Social Rights (EPSR) – a Point of Reference
AsVOXEuropestronglyidentifieswiththeEuropeanIdea,theeffortsatEUleveltodefinethesocialagenda,includingthefutureofwork,carriesparticularweight.
ThissectionfocusesontheEuropeanPillarofSocialRightsandhighlightstheprinciplesthatseemparticularlyrelevanttothetopicofthisVOXpaper.
“TheEuropeanParliamentcalledforasolidEuropeanPillarofSocialRightstoreinforcesocialrightsanddeliverapositiveimpactonpeople'slivesintheshortandmediumtermandenablesupportforEuropeanconstructioninthe21stcentury.Theleadersof27MemberStatesandoftheEuropeanCouncil,theEuropeanParliamentandtheEuropeanCommissionmadeacommitmenttoworktowardsasocialEuropeintheRomeagenda.ThesocialpartnershavecommittedtocontinuecontributingtoaEuropethatdeliversforitsworkersandenterprises.
TheaimoftheEuropeanPillarofSocialRightsistoserveasaguidetowardsefficientemploymentandsocialoutcomeswhenrespondingtocurrentandfuturechallengeswhicharedirectlyaimedatfulfillingpeople'sessentialneeds,andensuringbetterenactmentandimplementationofsocialrights.”14
ThePrinciplesthathaveparticularrelevancetothetopic‘FutureofWork’include(seeAnnex1foracompletelistofEPSRprinciples)15:
1. Education,trainingandlife-longlearningEveryonehastherighttoqualityandinclusiveeducation,trainingandlife-longlearninginordertomaintainandacquireskillsthatenablethemtoparticipatefullyinsocietyandmanagesuccessfullytransitionsinthelabourmarket.
4.Activesupporttoemploymenta. Everyonehastherighttotimelyandtailor-madeassistancetoimproveemploymentor
self-employmentprospects.Thisincludestherighttoreceivesupportforjobsearch,trainingandre-qualification.Everyonehastherighttotransfersocialprotectionandtrainingentitlementsduringprofessionaltransitions.
b. Youngpeoplehavetherighttocontinuededucation,apprenticeship,traineeshiporajobofferofgoodstandingwithin4monthsofbecomingunemployedorleavingeducation.
14Cf.EuropeanCommission,201715Ibid.
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c. Peopleunemployedhavetherighttopersonalised,continuousandconsistentsupport.Thelong-termunemployedhavetherighttoanin-depthindividualassessmentatthelatestat18monthsofunemployment.
5.Secureandadaptableemploymenta. Regardlessofthetypeanddurationoftheemploymentrelationship,workershavethe
righttofairandequaltreatmentregardingworkingconditions,accesstosocialprotectionandtraining.Thetransitiontowardsopen-endedformsofemploymentshallbefostered.
b. Inaccordancewithlegislationandcollectiveagreements,thenecessaryflexibilityforemployerstoadaptswiftlytochangesintheeconomiccontextshallbeensured.
c. Innovativeformsofworkthatensurequalityworkingconditionsshallbefostered.Entrepreneurshipandself-employmentshallbeencouraged.Occupationalmobilityshallbefacilitated.
d. Employmentrelationshipsthatleadtoprecariousworkingconditionsshallbeprevented,includingbyprohibitingabuseofatypicalcontracts.
9.Work-lifebalanceParentsandpeoplewithcaringresponsibilitieshavetherighttosuitableleave,flexibleworkingarrangementsandaccesstocareservices.Womenandmenshallhaveequalaccesstospecialleavesofabsenceinordertofulfiltheircaringresponsibilitiesandbeencouragedtousetheminabalancedway.12.SocialprotectionRegardlessofthetypeanddurationoftheiremploymentrelationship,workers,and,undercomparableconditions,theself-employed,havetherighttoadequatesocialprotection.
14.MinimumincomeEveryonelackingsufficientresourceshastherighttoadequateminimumincomebenefitsensuringalifeindignityatallstagesoflife,andeffectiveaccesstoenablinggoodsandservices.Forthosewhocanwork,minimumincomebenefitsshouldbecombinedwithincentivesto(re)integrateintothelabourmarket.15.Oldageincomeandpensionsa. Workersandtheself-employedinretirementhavetherighttoapensioncommensurate
totheircontributionsandensuringanadequateincome.b. Womenandmenshallhaveequalopportunitiestoacquirepensionrights.c. Everyoneinoldagehastherighttoresourcesthatensurelivingindignity.
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6 Vox Principles
TheEuropeanPillarofSocialRightsforms,intheviewoftheAuthor,isavalidstartingpointandframeworkforarticulatingVoxEurope’sownvaluesandprincipleswithregardto‘FutureofWork’.Theseprinciplesseektobalanceseveralvalues,including:
• CompetitiveSocialMarketEconomy• DecentWorkandPay• EfficientState• InclusiveSocietyofferingEqualOpportunities
ThedesiretostrengthentheEUtobecomeaneffectiveandtrustedfoundationforbuildingapeacefulandprosperouscommunityofEuropeancountriesunderpinstheinitiativeofcreatingtheVOXEuropepoliticalparty.
PublicattitudestowardtheEUareratherlacklusteratthismoment.ImplementationoftheEPSRthrougheffectivepoliciesatEuropeanlevelcouldgreatlyboostpublicsupportfor,andvisibilityof,theEU,andinspireanewsenseofcommunityandidentity16.
TheSocialPillarcanalsobeseenasanecessarycomplementtothedevelopmentoftheEuropeansinglemarket,theintroductionofasinglecurrency,andthefreedominmovement.
VOXEuropehasheretheopportunitytoprofileitselfasanadvocateforaEuropeanapproachtoSocialDevelopment,withpracticalminimumstandardsofsocialprotectionandofdecentworkandpay,leadingtowardsasuccessfuldigitaltransformationwhichcontributesbothtogreaterprosperityandbetterworkingconditionswithintheEU.
Inthefollowingchapters,thispaperfocusesonthreeselectedpolicyareasandpoliciesthatareessentialbuildingblocksforputtingtheEPSRprinciplesintopractice.
7 Strategic Policy Areas
Inthefollowing,thispaperfocusesonthreepolicyareas,whicharehighlyrelevantfortheFutureofWork,arestillbeingdeveloped,andaddressnewgroups,sofarnotyetfullyrepresentedinthepoliticalspectrum.
• FlexibilityandWork-LifeBalance• LifelongLearningtoMaintainEmployability• SocialProtectionandBasicIncome
16Weissbuch,p.185
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7.1 Flexibility and Work-Life Balance
7.1.1 Definition
Flexibilityhas(atleast)twoverydistinctmeaningsinthecontextofworkandlabormarkets:
• Theterm‚flexibility‘inthecontextoflabormarketswasinthepast‘owned’byemployers,seekingoptionsforswiftlyadjustingthequantityandqualityoflabortochangingdemandinthemarketplace.
• Today,‘flexibility’isbecomingacatchwordforworkers,seekingmorecontrolovertheir
time(‘timesovereignty’)17,includingworkinghoursflexibilityintheirdaily,annual,andlifetimeworkingarrangements.
Inthischapterwefocusonthelatter.Inparticular,weaskhowincreasedflexibilityforworkingpeoplewithregardtotimingandlocationofworkinresponsetoshiftingwork–lifepatternsandpriorities,canbebalancedwithadecentlevelofsocialprotectionandwithcompanyneedsforremaininginternationallycompetitive.
7.1.2 Issues, Trade Offs, Tensions
• Workinghourinflexibility.Whatthisstatisticdoesnotreveal,isthatmanyworkersarenotsatisfiedwiththeamountofworktheyhave.BasedonasurveyinGermany,18halfoffull-timeemployeeswouldliketoreducetheirworkinghours,inparttoreduceunpaidovertime(onaverage5hoursperweek)andinparttoreducecontractuallyagreedtime(onaverage39hrs/week).Bycontrast,athirdofpart-timeworkers(primarilywomen)wouldliketoincreasetheirhours.
• IncreaseinPartTime.InGermany,familymodelsofworkandtimemanagementhaveevolvedwithincreasedpart-timeparticipation,inparticularofwomen(anddecliningshareofnoteconomicallyactivewomen).Ontheotherhand,theshareoftwofull-timeworkingparentshasdeclinedfromover25%tolessthan20%.Thereisastillsmallbutgrowingshareoftwopart-timeworkingparents(stilllessthan3%).Wespeculate,thatthissharewouldgrowfurther,ifthecombinedincomeprovidesanacceptableeconomicbasis.19
17Weissbuch,p.11518Weissbuch,p.7619Weissbuch,p.33
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• Part-timetrap.The“part-timetrap”referstoasituationinwhichindividualsfindthat,althoughpart-timeemploymentreflectedtheirwishesatonephaseintheirlives,itbecomesa“trap”laterinworkinglifeastheywantbutareunabletoincreasetheirworkingtime.Thetermalsoreferstodisadvantagesinworkinglifewhichareoftenassociatedwithpart-timeemployment,suchaslowerchancesofprofessionaladvancement,lowerlevelsofparticipationincontinuingvocationaleducationandtraining,oralowerindependentincomeandsmallerpension.
• BreakdownoftheBoundariesbetweenworkandprivatelife.Theuseofmoderninformationandcommunicationtechnologiesisbreakingdowntheboundariesbetweenworkandprivatelife,withanewopennessreplacingthestructurespreviouslyimposedbythecompanyintermsoflocation,timeandorganization,intheformoffixedworkinghoursandworkplacesandthestaff’slong-termattachmenttothecompany.
Whilemoreself-determinationoftimeandlocationofworkisgenerallyseenaspositive,italsobringssomeunwelcomeeffects,i.e.anexpectationofhavingtobereachableallthetime,blurringthelinesbetweenhomeandwork,intensifyingworkpressure,andpotentiallyaffectinghealthandsafety,comparedtotraditionalclearlydefinedworkplacesandtimes.
• Flexibilityneedsofcompaniesandworkerscandiffersubstantially.Whileworkersstriveformoretimesovereigntytoaccommodatefamilyandotherlifepriorities,companiesstrive,inadditiontoworkers’satisfaction,forcosteffectiveness,staffavailability,andreliableworkquality.Companyneedsmightputatightlimittoworkers’flexibility,e.g.contactingworkersfrequentlyduringleisureorfamilytime.Inparticular,smallandmediumenterprisesmayfinditdifficulttoaccommodatetheiremployee’swishesforchangesinworkingtimeandduration,e.g.movingintoparttimeorintoanextendedsabbatical,becausethesmallnumberofstaffdoesnotallowforsmoothtemporaryadjustmentsinworkload.
• DecliningCoverageofCollectiveBargainingthroughcrowdworkingandpseudoself-employmentlabormarkets.Crowdworkinginvolveswork,usuallybrokendownintosmallertasks,beingassignedtocrowdworkersviadigitalplatforms.Workcanbeassignedeithertoacompany’sownemployees(internalcrowdworking)ortothirdparties(externalcrowdworking),whoareoftensoloself-employedpersons.Whilecrowdworkingenablesnew
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flexibleworkmodelsandmaygivecompaniesaddedflexibilityinmanaginglabordemand,theabilityofworkerstocollectivelynegotiatelaborstandardsdeclines.Thiscallsforpolicyactiontocreateaframeworkwithminimumstandardsforcrowdworkingandsimilararrangements,whichformallyarebetweenindependentcompanies,butdefactoareadependentquasiemployeesituation.SometimesalsocalledPseudoself-employment(Pseudoorshamself-employmentexistswhencontractingpartiesdescribealegalrelationshipasself-employment,eventhoughtheactualdesignandconductoftherelationshipconstituteswageandsalaryemployment,inlegalterms.)
7.1.3 Policy Options: Working Time Choice Act
Anynewpolicytoencourageandregulatemorework-flexibilitywillhavetobalanceatleastthreeprinciples:
• Enablemoreflexible,digital,mobileformsofworking,whilealso• Protectworker’shealth,continuousemployability,andbaseincomeduringalllifestages.
And• Increasetheinternationalcompetitivenessofcompanies.
WorkingTimeChoiceAct.AWorkingTimeChoiceActwouldaddressthesedifferentprinciplesandinterestsinonepolicypackage.AdraftWorkingTimeChoiceActhasbeenproposedbytheGermanWomenLawyersAssociation.20
Theterm“workingtimechoice”referstovariousapproachesproposedinthepublicdebate.Theserangetheintroductionofworkingtimecorridors,totheuseof“workingtimechoice”asanoverarchingtermformodelsallowingflexibilityinworkingtimeandlocation,suchasflexi-timeandlong-termaccounts,alternatingteleworkortrust-basedworkingtime.Such“workingtimechoice”canbeunderstoodasentitlements,enshrinedeitherattheworkplacelevel,incollectiveagreementsorasindividualrights,foremployeestohaveasayinthelengthandschedulingoftheirworkingtimeandinthechoiceoftheirworkinglocation,onthebasisofnegotiatedflexibility.Workingtimechoiceisthusaguidingprincipleforarangeofmeasureswhichaimtoallowworkingtimetobetailoredtobetterreflectemployees’individualneeds.
SuchWorkingTimeChoiceAct,couldincludethefollowingbuildingblocks,groupedinlinewiththeabovementionedthreeprinciples:
20Cf.DJB,2016;Weissbuch,p.120
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7.1.3.1 Enable Flexibility
• Timesovereignty,ingeneral,timesovereigntymeansthatanindividualhascontroloverhowtousehisorherowntime.Inthenarrowersense,itreferstoworkersbeingabletodeterminethelengthandschedulingoftheirworkingtime
• Trustbasedworkingtime,whereclearworkobjectivesareagreed,butnoformalattendanceortimerecordingtakesplace.Theemployercontinuesresponsibleforcompliancewithworkingtimeregulations(whichcanbechallenginginpractice).
• FamiliyWorkingTimetoallowbothparentstogointopart-time,withpossiblecompensationofreducedincomeduringspecificlife–phases(e.g.duringearlyinfancyasforeseenintheGermanParentalLeaveandAct)tobetterbalancebetweenparents’responsibilitiesforfamily,caregivingandgeneratingincome.
• Life-phaseapproach.Alife-phaseapproachtoworkingtimeenablesemployeestoreducetheirhoursincertainlifephases,e.g.whenstartingafamilyorundertakingcontinuingvocationaleducationortraining,sotheycanbetterbalancethevariousdemandsontheirtime.
• Long-termaccounts.Long-termaccounts–referredtointheGermanlawas“credits”–enableemployeesto“saveup”portionsoftheirpayortimeworkedinordertolatertaketimeoffworkforlonger,sociallyinsuredperiods.Creditscanbeusedflexiblytoallowworkerstotaketimeoffforpurposesdefinedinlegislation,suchascareleaveorparentalleave,orforpurposesagreedwiththeemployer–e.g.continuingvocationaleducationandtraining,asabbaticalorthetransitionintoretirement.Theythusenableindividualstoshapetheirownworkinglives.Thelegalprovisionspermitawiderangeofoptions.Thespecificscanbeagreedbyemployeesandemployers.
7.1.3.2 Protect Workers
• Non-reachabilityagreement,topreventundueoverworkandbreak-downoftheboundariesofwork,inparticulartolimitreachabilitytospecifictimesandsituations,thatarecompatiblewithlaborhealthandprotectionlaws,thatapplytoregularofficeorfactorybasedworkarrangements.
• GeneralRighttoTemporaryPart-TimeWork,tofacilitatelife-phaseappropriateadaptationofworkingtime,withoutfallingintopart-timetrap,i.e.difficultiestoreturntofulltimework.InGermany,suchinitiativeformspartofthe2013to2017CDU/SPDcoalitionagreement.
• ExtendSocialSecurityCoveragetoSelf-employed.Includingself-employedindividuals(inparticularstart-upentrepreneurs,crowdworkers,andthoseinemployee-likedependency)inthecommunityofsolidarityofthestatutorypensioninsurancesystemwouldgivethemthesamerightsandobligationsasallotherinsuredpersons.Thestatutorypensioninsuranceobligationshouldapplyprimarilytoyoungerpeoplewhoenterself-employmentaftertheobligationentersintoforce.Thereshouldalsobegreaterscopetoreducecontributionswhilesettingupanewbusinessandinperiodswithlowearnings.Inaddition,thosewhoarealreadycoveredbyanobligatorysystem,orotherpre-existingvoluntaryarrangementsforoldageincome,shouldbeentitledtoreceiveanexemptionfromtheobligationofcoveragebythestatutorypensioninsurancesystem.Thisappliesi.e.tofarmersandfreelancerswhoinmanycountriesarecoveredbyprofessionalretirementschemes,suchaslawyers.
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7.1.3.3 Company Competitiveness
• RelaxexistingEUWorkingTimeDirectivetomeetcompanyneeds.Aconditional,limitedrelaxationoftheWorkingTimeDirective’scurrentprovisionsonthemaximumdailyworkingtimeandrestperiodsshouldbepossible,attheworker’soremployer’sinstigation,ifthefollowingconditionsaremet:
•Acollectiveagreementmustpermitthisrelaxationofthelaw,canlimitittocertaingroupsofworkers,anddefinemorespecificrequirementsforworkingtimechoiceattheworkplacelevel.
•Aworksagreementaboutworkingtimechoicemustbeinplace.Ataminimum,thismustincludeclearrulesontherecordingofworkingtimeandtheconductingofriskassessments.
•Theemployeesconcernedmustalsogivetheirindividualconsenttothisrelaxationofthelaw.
•Thisrelaxationofthelawmustbetiedtoorganisations’willingnesstoevaluate,orarrangeforotherstoevaluate,theresultingimpactsandtomakethefindingsavailabletotheGovernment.
Theimplementationofthisincreaseinflexibilitymustgohandinhandwithnewprotectiverights.Forexample,thiscouldmeanthatthestatutorymaximumten-hourdailyworkingtimemaybeexceededtwiceatmost,providedthatthisdoesnotleadtotheworkerexceedingtheaveragemaximumweeklyworkingtimeof48hours,andthattheworkerisgivenadayoffnolaterthanthefollowingweek.Inanycase,theexistingreferenceperiods,overwhichanaverageofeighthoursperworkingdaymaynotbeexceeded,shouldbedefinedmuchmorenarrowly.
• Workintensification.Workintensificationdescribesanincreaseintheworkwhichis,orhastobe,carriedoutinaspecificperiodoftime.Itcanbecausedbyariseintimeandperformancepressureduetofactorssuchasstaffshortages,rationalisation,phasesofhighworkloadinthecompany,orchangedworkflows.TherelaxationoftheWorkingTimeDirectivewouldallowcompaniestorespondtosuchsituationsinaflexibleway.
7.1.4 Proposed Position for VOX Europe
VOXEuropehastheopportunitytovigorouslyengagewithanewgenerationofworkingpeopleinEurope,whichfaceverydiverselabormarketsintheirdifferentcountriesandhaveverydiverseaspirationsconcerningwork.
Workerswith‘traditionalexpectations’ofstablelife-longemploymentwithdecentpay,arealreadycateredforbyexistingpoliticalparties.ThereislittleroomforVOXtoofferadifferentpolicyprogramforthisgroup.
However,thereisagrowingpopulationwhovoluntarily,orforcedbychanginglabormarkets,liveamoredynamicworklife,changingemployers,shiftinginandoutofself-employment,undergoing
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severalcyclesoftrainingandre-training,demandmorenon-workingtime,andaboveall,moresovereigntyorcontrolovertheirtime.
Thisgroupmayalsoovertime,voluntarilyorinvoluntarily,lookbeyondtheirnationalbordersattheEuropeanlabormarketastheirpointofreference,andwillwantflexibilityandsupporttoexploreopportunitieswithinthiswiderfield.
Thismoredynamicworkingpopulationismuchlesscateredforbythetraditionalparties,whicharegrapplingthemselveswithunderstandingthesenewtrends,suchashappenedinGermanywiththeWorking4.0consultationprocess.VOXhashereadvantagesovertraditionalparties:thesehavetobecarefulnottooffendtheirtraditionalpoliticalclientele,thatoftenresiststherapidchanges,suchaslaborunionsgenerallyresistflexibilizationofworkingtimes,orcompaniesoftenresistofferingworkerstoshiftbetweenfullandparttime.
Hence,VOXEuropeshouldfullyembracetheagendaoftheWorkingTimeChoiceAct,includingthebalancingofworkersandcompanies’flexibilityneeds.
Particularattentionshouldbegiventothegrowingnumberofself-employed,start-ups,crowdworkers,whicharenotyetwellrepresentedpolitically,andforwhichVOXcouldbecometherecognizedvoice.
AparticularchallengewillbetheharmonizationofsuchnewrulesacrossEurope,whichagainshouldbeaVOXEuropepriority.Theapproach,however,shouldnotbetopushforasimultaneousharmonization,butrathervisionaryimageofthefutureofworkwithclearsteps
7.2 Lifelong Learning to Maintain Employability
7.2.1 Definition.
LifelongLearningreferstoacleardepartureofatraditionalthree-stagelifemodel,withschooling/studies,work-life,andretirement,towardslife-modelwhichallowsforseveralcyclesoflearningandworking,sabbaticals,oroff-timetocareforfamilymembers,etc.
Employability.Employabilityisgenerallyunderstoodastheabilitytoparticipateinworkinglife.Individualemployabilitydependsontherequirementsoftheworkingworld,ontheonehand,andtheindividual’spersonal,specialist,socialandmethodologicalskills,personalhealthandabilitytowork,ontheother.
7.2.2 Issues, Trade Offs, Tensions Asoccupationsandsectorsaretransforming,itbecomesmoreimportanttomaintaintheemployabilityofworkersthroughlife-longlearning.Inparallel,theshortageofskilledworkersincertainsectors,requiresimprovedaccessandgreaterreachofjobqualificationmeasuresforalargergroupofworkers.
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Itbecomesmoreandmoreclearthatemployabilityandlife-longlearningisadirectresponsibilityandpreoccupationofeachindividual.
Thepathofchangeintechnology,economyandthereforeworkissorapidthatnobodycansimplydelegatehisorheremployabilitytoasinglecompanyorthetraditionaleducationsystem,thatcannotguaranteethatskillsandcompetenciesrequiredbypresentjobswillremainvalidandrequiredforever.
Nevertheless,theroleandresponsibilityofpublicinstitutionsandemployersremainfundamental:theyhavetocreatetheconditions,transparencyandstimulustosupporttheeffortofeachindividualtofindhis/herpersonalpathforalife-longlearningandemployability.
Thereisbroadconsensusacrossthepoliticalspectrum,aboutthenecessitythatactionisneededatfourlevelstoimprovethecontinuingvocationaleducationandtrainingsystem.
• Improveopportunitiesforaccesstojobtrainingandre-training,inparticularbysofardisadvantagedgroups,suchasolderworkersandunskilledworkers.
• Expandtheofferofjobandtrainingcounselling,• Bettercoordinateandsystematizetheofferoftrainingacrossdifferentinstitutions,and• Expandtheuseofblendedlearning,includingforworkflowintegratedlearning.
Opportunitiesforaccess:whiletherehasbeenprogressmadeinrecentyearsinsomecountries,e.g.Germany,accesshasbeenhighlyuneven:peopleovertheageof50,low-skilledpeople,peoplewithamigrantbackground,employeesofsmallcompanies,andtemporaryagencyworkerstakepartincontinuingtrainingmuchmorerarelythanothers.
Informationandcounselling:typically,somecounselingisprovidedbyGovernmentemploymentagenciesandanumberofnon-governmentalentities,suchaschambersoradulteducationcenters.However,thereisnonationwide,letaloneEuropewide,networkofindependent,low-thresholdcounsellingcenters;noraretherebindingqualitystandardsfortheprovisionofcounsel.Thedegreeofprofessionalizationamongcounsellorsalsovarieswidely.
Systematization.Thecontinuingtraininglandscapeisquiteheterogeneous,shapedbyvariousinstitutionsandeducationaltraditions.Thishinderscooperationbetweenpublic,in-companyandexternalcontinuingtraininginstitutions.
BlendedLearning.Digitalizationisgeneratingneworevolvedformatsforcontinuingtraining,suchasblendedlearning.Thesenewformsoflearningallowgreaterflexibilityinwhenandwherecontinuingtrainingtakesplace,andpromotelearningintheworkplace.Computer-basedtrainingpavesthewayforworkflow-integratedlearning.Thiscutscostsandallowsforimmediateapplicationofnewlyacquiredcapabilities.Digitalassistanceandtutoringsystemsgofurtherandoffertheworkerindividuallytailoredassistanceandexplanationswithintheproductionprocess.Newcontinuingtrainingformatsandsystemscanhelptoimpartcontentinappropriatewaysforspecifictargetgroupsandages.Part-timeemploymentmustnotimplicatealowerlevelofparticipationincontinuingvocationaleducationandtraining.21
21Weissbuch,p.108
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Therearesomespecificchallenges,thatnewpoliciesneedtoparticularlyfocuson:
• Limitedaccessbylowerskilledworkers.Specialattentionmustbedevotedtothefactthatlow-skilledworkersinparticularareofteninvolvedinhighlyconcentratedworkprocesseswithfixedcycles,withlittleflexibilitytoengageincontinuingtrainingintheirday-to-daywork.
• LimitedtrainingcapacityofSmallandMediumSizedEnterprises(SME).SMEsfinditmoredifficulttoofferin-housetraining,freeupstafftimefortraining,orfinanceexternalcontinuoustrainingfortheirstaff.
7.2.3 Policy Options
PolicyOptionstoenablelife-longtrainingforemployabilityrangefromincrementalimprovementsofexistingsystems,tolegalchangesthatenablebroaderparticipation,toafundamentalre-orientationawayfromanunemploymentinsurancetowardsapreventiveemploymentinsurance.
FromUnemploymenttoEmploymentInsurance.Theoverallobjectiveistoestablishanemploymentinsurance,thathelpsmaintainemployabilitybysupportingtransitionswithinpeople’sworkinglivesbyrepeatedperiodsofvocationaleducationandtraining.Thisincludessupportforprofessionaldevelopmentandforinnovativerisktaking,suchasstartingupacompany.Thefocuswillbeonpreventativeaction,informedbymonitoringoflabormarketdevelopments,improvedaccesstocounseling,awiderofferofjob-relevanttraining,togiveaccessindependentlyofage,sizeofcompany,oremploymentstatus.22
Specificmeasuresunderthisoverallstrategycouldincludethefollowing.
7.2.3.1 Policy Options - Immediately adopt Erasmus Pro: 200 thousand apprenticeships a year
ProposedistheimmediateadoptionofawiderYoungEuropeanApprenticesscheme,theErasmusPro.AsmobilityisacoreEUcompetence,itisreasonabletoexpectamoreambitiousplanonapprenticeshipthattheEAfA,whichiscurrentlyinplace.Adedicatedbudgetofroughly€5 billion(orapprox.800€permonthperyoungpeople),wouldfundayoungEuropeanapprenticeschemethatisabletoprovide200thousandtwo-yearlongapprenticeshipsayear23.
MobilityliesattheheartoftheEuropeanUnion’scalling.Fromtheveryoutsetitsmissionhasbeentofacilitatethefreecirculationofpeopleingeneraland(thoughthismaybelesswell-known)alsoofyoungworkers(seeArticle50intheTreatyofRome).
Majortextshavebeenapprovedandmobilityschemeshavebeenadopted,themostemblematicofwhichisunquestionablytheErasmusprogram,whichhasallowedover3millionstudentstopursueapartoftheirstudiesinauniversityinadifferentmemberstate.
22Weissbuch,p.10923Cf.Delorsetal.(2015)
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WhatEuropehasprovencapableofdoinginthepastforitsfutureuniversitygraduateswiththeErasmusprogram,itcanandmustdoagaintodayforitslessqualifiedyoungpeople,whoareinevitablytheonesworsthitbyunemployment.
• DescriptionoftheProgram:
AnewEuropeanmobilityprogram:ErasmusPro:ToallowonemillionyoungEuropeanstogainaprofessionalqualificationinadifferentEuropeancountryby2020.
Theyoungpeopleinvolvedwillbetakeninbyatrainingcenterandabusinessinthehostcountryforaperiodstretchingfromtwotothreeyears,withongoingsupportfromtheirregionsoforigin.
TheErasmusProprogrammustbeextremelyambitiousinitsaimsifitistotriggeramobilizingeffectinyoungpeopleandbusinessesandifitistohaveanimpactonyouthunemploymentinEurope:henceaimforatleast200,000new“youngEuropeanapprentices”ayear!
itlieswithinthememberstates’graspifweconsiderboththevacantapprenticeshipsavailabletodayandthepotentialforcreatingnewposts.
Overandabovethescheme’spotentialforboostingtheofferincountriesfacingalabourshortage,hundredsofthousandsofnewpostswillbecreatedeveryyearbetweennowand2020incountriescurrentlydevelopingtheirapprenticeshipsystems.
• Goals:Ø Unemployedyoungpeopletobenefitfromtheprospectofajobinthoseregionswhere
apprenticeshipoffersgounansweredØ Foranyyoungpersontoachievequalifyingtraining,toenhancetheiremployability
combinedwiththeirownpersonalenrichmentofa‘Europeanexperience’–thiswouldcontributetothedevelopmentofEurope’shumancapital;
Ø Toimproveapprenticeship’simageinEurope,therebyhelpingtoensurethesuccessofthenationalreformscurrentlyinhandaimingtodevelopthiskindoftraining.
• Howtheprogramworks:mobilizingyoungpeopleandbusinesses
TheErasmusProprogrammustoffer:
o AccesstoalloffersavailablethroughouttheEU;theseofferswouldberelayedviatheEURESnetwork24,nationalemploymentagenciesandeverypossiblepublicorprivateprofessionaland/oryouthtraininginstitution.Theyoungpersoninvolvedmustbeabletobenefitfromtheassistanceofanationalemploymentcounsellorinpreparingandsubmittinghisorhercandidature.TheagencythatsendsayoungpersontoanotherEuropeancountrywouldberesponsibleforkeepingintouchwiththatyoungperson,inparticularviaaninterviewconductedatleastonceayear.
24MoreinformationontheEuropeanPortalforProfessionalMobility:https://ec.europa.eu/eures/public/de/homepage
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o Coverageofmobilitycosts(twotripshomeperyearandanaccommodationgrant)andthecostoflanguagetraining.ThisEuropeanassistancewouldbeinadditiontowhateverremunerationtheyoungworkerswouldreceivefromtheirhostcompany.
o Supportinthehostcountry,startingwithpreparationforthetrainingstintandcontinuingthroughouttheyoungperson’sstayinthecountry.
• TheProjectLeaderentities
TheErasmusProprogrammustrelyonanetworkof“projectleaderentities”inthehostcountries.TheseentitiesmustofferyoungEuropeans
o aseriesofapprenticeshippostso supporttotheyoungpersonwhomtheyselect(helpingwithredtape,language
courses,socialandculturalintegration,disbursingtheEuropeanassistance)
Theseprojectleaderentitiescanbe:
o thebusinessesthemselves,whentheyareinapositiontotakeinagroupofatleast10apprenticesandtoprovidethemwiththerequiredlevelofsupport,oralternatively
o thetrainingcenters.Thelatterwouldplayaparticularlyimportantroleforsmallandmediumbusinessesunabletodirectlyorganizemobilityfortheyoungpeoplethattheywishtotakeonboard.
Lastly,inordertoencouragebusinessestocommittothiscross-borderqualificationscheme,theErasmusProprogrammustcontributetothewagespaidtoEuropeanapprentices.
Butaboveandbeyondthisfinancialincentive,businessesmustbeencouragedtoshouldertheirshareofresponsibilityintrainingyoungEuropeanworkers.ItisintheirowninteresttohaveaEuropeanlaborforcewhoseskillsandknowledgemeettheirrequirements.
• Abudgetofapproximately€5billionayearforyoungEuropeanapprenticeso FinancingNeeds
TheimplementationofthisschemewouldcosttheEUapproximately€800amonthperyoungpeople,includingboththeassistanceofferedtoyoungpeopleandthefinancialincentiveforbusinesses.
Anaveragecostof€20,000to€30,000peryoungperson,varyingaccordingtothelengthoftheapprenticeship).Thiseffort,wortharound€5billionayear,isafiguretowhichtheEUanditsmemberstatescanstretch.
TheEUwouldonlyneedinthefirstyeartomobilize€2billion,whichiswhatthe200,000youngEuropeanapprentices’mobilitywouldcostintheirfirstyear.
o FundingSources
Theresourcesseemtobethere.Thenewschemecouldbelinkedtothe“YouthGuarantee”scheme:anapprenticeshipabroadshouldbeoneoftheoptionsofferedtounemployedandunskilledyoungpeople.Thuswemightenvisagemobilizingpartofthe
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€6.4billioninthe“YouthEmploymentInitiative”inordertolaunchthisnewmobilityscheme.Ifthepoliticalwillisthere,fundingisnotgoingtostandinthewayofthisinitiative’sadoption.
Andinanycase,thecostofactingmustbeoffsetagainstthecostoffailingtoact:arecentstudyhasrevealedthattheannualcostofyoungpeopleintheEUwhoarenotineducation,employmentortrainingtoppedthe€150billionmarkin2011.Andinadditiontothat,thereisthemedium-tolong-termcostofunemploymentbothtotheeconomy–unemploymentfuelsadeteriorationinhumancapital,whichinturnhasanegativeimpactonproductivityandonthepotentialforgrowth–andtosociety.
• GuaranteeingcircularmobilityforyoungapprenticeswithintheEUandfacilitatingtheirreturntotheirnativecountries
EveryEuropeanregionshouldbebotharegionoforiginandahostregionforyoungEuropeanapprentices,asisthecasewithstudentmobilityinthehighereducationsphere.
YetgiventhecurrentdifferencesinyouthunemploymentlevelsinthevariousregionsoftheEU,wemaywitnessacyclicalimbalanceinthemobilityflowacrosstheEUcausedbytemporaryeconomiccircumstances.…youngpeopleincountrieswhereunemploymentisespeciallyhightobemorereceptivetothisinitiative,whilethecountriesinwhichyouthunemploymentislowestarealsothosethatcanmakethebestapprenticeshiptrainingoffers.
Inviewoftheriskofcyclically“asymmetrical”mobility,itisimportanttoofferthreeresponses,allofwhicharedesignedtofacilitateyoungpeople’returntotheirnativecountries:
o theyoungEuropeanapprentice’sfreedom.Attheendnoobligationtoremaininthehostcountry,orindeedtoreturnhome.
o Theapprentice’sregionoforiginmuststayintouchwithitsyoungmobileapprentices.Inadditiontotheroleplayedbynationalemploymentagencies,eachmemberstateshouldcreateanonlinenetworktobringtogetherofallitsyoungpeopleservingapprenticeshipsabroad.Thisdynamicwillincreasethelikelihoodoftheyoungpeoplereturningtotheirregionsoforigin.Eachcountrywillthusbenefitfromthereturnhomeofits“Erasmuspro”youngpeoplewithaprofessionalqualification,fluencyinaforeignlanguageandaEuropeanculturaloutlook.
o TheEUalsohasanimportantroletoplayinguaranteeingthiscircularmobilityontheyoungpeople’part.ThefundingoftwoannualtripshomemustbeguaranteedinthecontextoftheErasmusProprogram,buttheEU’sprimarycontributioninthisfieldwillbetheactionittakestocutthroughtheadministrativeandlegalobstaclesstandinginthewayofworkermobility.
BOX1HowWouldErasmusProWorkinPractice?
ASwedishtelecommunicationscompanyofferstotrain50Europeanapprenticesinjobsinthetelecomfield.Inthatcapacityitbecomesa«projectleaderentity».ItsofferisdisseminatedthroughEurope,inparticularvianationalemploymentagenciesandthesocialmedia.OneoftheyoungpeoplecontactedinBarcelonaisinterestedintheproposal;anotherhaslearntabouttheErasmusProprogramonFacebook,oneofthescheme’spartners.TheybothendupbeingtakenonboardbytheSwedish
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company,aspartofagroupofyoungpeoplefromseveraldifferentEuropeancountries.TrainingbeginswithapracticalgroundingintheSwedishlanguageandinthecountry’scultureinatwelve-weekcoursedesignedtobeasmuchfunaspossible.TheEuropeanyoungpeoplethenbegintheirprofessionalapprenticeshipalongsidetheirSwedishcolleagues.Alloftheirtrainingcostsarebornebythecompany,whichalsopaystheyoungpeopleanequivalentmonthlywagetothatwhichaSwedishapprenticewouldearn,anditcoverspartoftheirmobilitycosts(travelandaccommodation).Thecompanyisresponsibleforthetraining’ssuccessandreceivesapproximately€10,000peryearperapprenticefromtheErasmusProbudgettooffsetitsexpenses.Inadministrativeterms,thesefundsreachthecompanyviatheSwedishemploymentagency.
Attheendoftheirapprenticeship,severalyoungpeoplechoosetotakeupajobofferinthecompanythathashostedthem,whileoneofthetwoyoungpeoplefromBarcelonachoosestoreturnatoncetohisnativeregionwhere,thankstothelocalpublicemploymentagency,heisrecruitedbyaSpanishtelecommunicationscompanyonthestrengthofhisqualification.Theotheryoungperson,whohaselectedtoremaininSweden,makesregulartripshomeandkeepsintouchwithhisnationalemploymentagency.Heplanstotakeupawell-paidjobinSpainafteranotherfewyearsdevelopinghisprofessionalexperienceinSweden.
7.2.3.2 Policy Options – Long-Term Accounts and Start Capital and/or Bonus for education
• EncouragetheestablishmentofLong-termAccountsforeveryworkingperson,thatgiveworkerssomeflexibilitytoundertaketraining,sabbaticals,orcareerchanges.(seechapteronflexibility).
• OfferaStartCapitalorSocialInheritancetoeveryyoungperson,asafirstdepositinthelong-termaccount,thats/hecanusefortraining,startingupabusiness,oratransitiontopart-timeforfamilyorpersonalreasons;
• BoosttheLong-termAccountwithperiodicalBonusfortraining(likeavalueof€6’000every5years),that
o shouldbegivenbycompaniesandfundedbyequivalentlowertaxesonlabor,or,incaseofunemployment,directlybythestate;
o shouldbespentatthechoiceoftheindividual,inarangeofcoursesorotherlearningopportunitiesendorsedbythecompanyorthestate.
7.2.3.3 Policy Options - Free Up Time for Job Training for working people
FreeUpTimeforJobTrainingforworkingpeople.Governmentneedtosetupregulationthatenablescurrentlyemployedpersonstofreeuptimeforhoningtheirskillsorpreparingforacareerchange.E.g.Austriaofferstocurrentlyemployedpersonsupto12monthsofpaidtimewithina4-yeartimeframetopursueaformaltrainingorstudies.Typicalapplicationsarelanguagetraining,finishingschooldegrees,orstudies.ThearrangementsareagreedbetweenemployerandemployeeandfinanciallysupportedbytheGovernmentwithapaymentequivalenttotheunemploymentinsurance.25
7.2.4 Proposed Position for VOX Europe 25MoreinformationontheAustriaBildungsteilzeit:http://www.bildungskarenz.at/
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VOXEuropepromotesmeasureswhichresultinhighemploymentandcontinuedemployabilityforEuropeancitizens,amidstprofoundstructuralchangesintheeconomyandsociety.Withthisintention,VOXsupportsabroadstrategytomove‘FromanUnemploymenttoanEmploymentInsurance’withare-orientationtowardsapreventiveschemefocusedonmaintainingemployability.
VOXEuropeadvocatestheimmediateadoptionof‘ErasmusPro’,aprogramtoincreaseopportunitiesforyoungpeopletoenterthelabormarketcombinedwitha‘EuropeanExperience’.Duringafirstphase,adedicatedbudgetofroughly€5 billion,wouldfundayoungEuropeanapprenticeschemethatisabletoprovide200,000two-yearlongapprenticeshipsayear26.SuchinitiativeisverysignificanttobuildappreciationfortheEuropeanideaamongayoungpopulationthatisnotreachedbytheacademicallyorientedErasmusprogram.
VOXEuropesupportsIndividualLong-TermAccountsthatsupportlife-longeducation,boostedbyaStartCapitalforeveryyoungpersonandperiodicBonusforlive-longlearningandre-trainingtoprovidefinancialsupportandtimetoabroadergroupofworkers,includingfromsmallandmediumenterprises,tomaintaintheiremployability.TheBonuswouldcomethroughthecompanyandbefundedbyequivalentlowertaxesonlabor,or,incaseofunemployment,directlybythestate.Thebonuscouldbespentonawiderangeoflearningopportunitiesatthechoiceoftheindividual,includingcourses,practica,hands-ontrainings,whichenhanceemployabilityandareendorsedbythecompanyorthestate.Aceilingforthebonuswouldneedtobesetcountrybycountry(e.g.€6’000every5years).
Morebroadly,VOXEuropesupportsmeasurestomaketheEuropeanlabormarketmoretransparent,includingsettingupanEU–wideeffectiveLaborMarketInformationService.Whilelabormobilityislegallyenshrined,italsotakesdetailedinformationaboutskillneedsandjobopportunitiesinparticularregions,toenableworkerstobenefitfromanintegratedlabormarketacrossnationalandlanguagebarriers.
7.3 Social Protection: Minimum Guaranteed Income (MGI) and Universal Basic Income (UBI)
7.3.1 Definitions
SocialProtectionreferstoasystemofinsurancesandregulations,coveringriskssuchasunemployment,sickness,disability,aswellasprovideincomeforoldage.
Guaranteedminimumincome(GMI),alsocalledminimumincome,isasystemofsocialwelfareprovisionthatguaranteesthatallcitizensorfamilieshaveanincomesufficienttoliveon,providedtheymeetcertainconditions.Eligibilityistypicallydeterminedbycitizenship,ameanstest,andeitheravailabilityforthelabourmarketorawillingnesstoperformcommunityservices.Theprimarygoalofaguaranteedminimumincomeistoreducepoverty.Itisdeeplyrelatedtotheobjectiveofre-integratingunemployedintheworldofwork.
Basicincome(UBI).Theterm“basicincome”–oroften“unconditionalbasicincome”or“UBI”–isasocial-policyapproachunderwhichallcitizens,withoutdistinction,withoutmeans-testingand
26Cf.Delorsetal.,2015
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withoutbeingrequiredtodoanythinginreturn,receiveasetamountasapublictransferbenefitonaregularbasis.
Thereareawiderangeofproposalsatnationalandinternationallevelregardingthespecificsofhowsuchasystemcouldwork.
7.3.2 Issues, Trade Offs, Tensions
7.3.2.1 Diverging Views on The Future of Social Protection and the Welfare State
Digitalizationandglobalizationraisecomplexquestionswithregardtothefutureofsocialprotection,ormoregenerally,thewelfarestate.
Oneviewisthatdigitalizationwillresultinmassivejoblosses.Othersarguethatthereisnoevidenceofthis,atleastinGermanytodate.Nonetheless,thereisfearthatanarmyof“digitallaborers”(DigitaleTaglöhner)mightgiverisetoincreasedsocialinequality.Digitalization,itisfeared,couldexacerbateexistingdivisionsinsocieties,includinggrowinginequalityinthedistributionofwealth,incomedivergence,thelossofjobswithcompulsorysocialinsurancecoverage,theriseinprecariousemployment,thespreadofpovertyrisksandtheinadequatesocialprotectionofferedbythewelfarestateforsomegroups.Anewdividecouldalsoemergeifonlyelitesweretobenefitfromtheadvantagesofdigitalization,suchasgreaterpersonalfreedomintheorganizationoftheirwork,whileothersnot.
Therearequitedivergingviews,whatconsequenceshouldbedrawnwithregardtothefutureofthewelfarestate,whichcouldbecategorizedasfollowing:
• Morewelfarestatewithbroadercoverage.o Quote:“…Forsocialinsuranceforemployees[should]beexpandedtocreatea
comprehensivesocialinsuranceschemecoveringallpersonsinwork.Wereiteratethiscall,asitistakingonanewurgencywhenitcomestoprovidingadequatesocialprotectionforthenewformsofworkandemploymentwhicharepotentiallyincreasingasaresultofdigitalization.Theentirelaborforcemustbeincludedinthe
BasicIncome(UBI)
MinimumIncome(GMI)
Conditionstogetit:Citizenship YES YESMeanstest YESAvailabilityforlabormarket YESWillingnesstoperformcommunityservices YESCommittementtoareintagrationtrajectory YESNotindividuallydefined(ex.Familyincomeisconsidered) YES
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socialinsurancesystem.Employersandclients(aswellas“intermediaries”)mustbearanequalshareofthecosts.”27
o Thedemandonthewelfarestateistoprovidecomprehensiveprotectionfromtheuncertaintiesofdigitalization,includingtheerosionoftraditionalworker–employerrelationshipsanddeclininginfluenceoflaborunions.EmphasisisonStateorganizedsolidarity.
• Less(notmore)welfarestate–coverageisalreadyadequate,reachingeveryone.o Quote:“Thereisalreadyanadequatelevelofsocialsecurityinthiscountryforevery
individual.Thereisnoneedforafurtherexpansion.Thatwouldonlyresultinamorebloatedwelfarestate”28
o Thedemandonthewelfarestateistolimititselftosafeguardminimumstandards.Emphasisisonentrepreneurialandindividualfreedomandself-responsibility.
• WelfareStateasaSocialPartnershipo Quote:“Toensurethatdigitalization’sopportunitiesbenefitthewholeofGerman
industryanditsworkers,aswellasjobsinGermany,weneedaviablesocialpartnershipandapoliticalframeworkwhichfostersinnovation,avoidsbureaucraticregulationsandboostsentrepreneurialfreedom.”29
o Thedemandonthewelfarestateistoprovideanenablingenvironmentwhichfostersbalancedsolutionsbetweensocialpartners.Emphasisisoncreativityof
o decentralizedsolutions.Despitedivergingviewsonthefutureroleofthewelfarestateandonthescopeofsocialprotection,thereisbroadagreementonthreecrucialchallengesthatthewelfarestateswithintheEUwillhavetotackle:
• Securingthelong-termfinancingofthewelfarestate.• Providingabasicincometoenableworkersforthelengthoftheirworkinglifetoremain
employableandsupportingthemduringmorefrequenttransitionsduetostructuralchangesorshiftingprioritiesindifferentlifephases.
• IntegratingandharmonizingsocialprotectionacrosstheEuropeanUnion.
7.3.3 Policy Options –Unconditional Basic Income (UBI)
Inthisdebateaboutthefutureofthewelfarestate,theideaofanUnconditionalBasicIncome(UBI)playsanimportantandcontroversialrole.Theideahasalongtraditionineconomicthinking(asearlyasThomasMorusinhis‘Utopia’,whothoughtofitasapolicytorenderstealingobsolete)andhasrecentlybeenrevived,aspossibleresponse,i.e.tothefearedlossofjobsduetoautomatization.
TheadvocatesinfavorofUBIofferthefollowingarguments:
• SimplifyWelfarePayments.TheCatoInstitute,anAmericanthink-tankwhichspendsmuchofitstimecallingforasmallerstate,publishedasympatheticanalysisofUBIpoliciesin2015.
27QuotebyVer.di(GermanUnitedServicesTradeUnion),Weissbuch,p.17828QuotebyVBW(BavarianIndustryAssociation),ibid.29QuotebyDaimlerAG,ibid.
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Itfeelsthat,thoughitmightpreferaworldwithnogovernmentredistribution,abasicincomeisthesimplest,leastintrusiveandleastcondescendingwaytoprovideredistributionifredistributiontheremustbe.Furthermore,sincethebenefitwouldnotphaseout,andbepaidirrespectiveofotherincome,therewouldbestillbeahealthyincentivetoseekadditionalworkhoursorincome(andavoidperverseincentivese.g.ofunemploymentschemes,deterringpeoplefromseekingwork).
• AssureaLivinginaWorldofRobotsandFewPaidJobs.Someofthepeoplebehindtoday’stechnologicalchangeseeuniversalbasicincomeinsimilarterms—awayofassuringalivingforallinaworldofrobotsandartificialintelligence.Totheextentthatsuchdisruptionispartoftheirbusinessmodel,thisbeneficenceisalsoawaytoneutralizecomplaintsaboutthehavoctheirinnovationsmaywreak.30
• EmpowerWorkerstoallocatetheirtimemorefreelyandtotakerisksleadingtoinnovations.Workerswouldfinditeasiertochosebetweenpaidwork,training,andunpaidwork,ortotakeriskofstartingabusiness.Inafastchangingjobmarket,workerscouldtakemoretimetotrainandexploredifferentcareers.Societywouldlikelybenefitfromaboostininnovation,morequalifiedworkers,reducedunemploymentpayments,aswellasanincreasedvolumeofvolunteerism.
• StrengthenSocialJusticebyrewardingsofarunpaidlabor.Womendothelion’sshareoftheworld’sunpaidlabor.Inmostoftheworld,theyworkmorehoursadaythanmendo,butcommandalowershareoffinancialresources,largelybecausetheytakeonmoreunpaidchildcareandresponsibilitiesforthefamilyhome.Auniversalbasicincomewouldshiftpurchasingpowertowardpeoplewhodoworkwhich,thoughvaluabletosociety,isnotrewardedfinancially.Anditwouldclearlybenefitpeoplewithnoprospectofremuneratedwork,andthusmostofthoseinextremepoverty.
ThecriticsofUBIargueasfollows:
• UBIistooCostly.Evenforrichcountries,toprovideauniversalbasicincomeofsay€10,000/yeartocoverbasicneedsisafiscalchallenge.ThetablebelowindicatesthatonlyDenmarkcoulddoso,withoutraisingtaxes.InGermany,thiswouldbemorelikelyaround€8,000andintheUSonlyabout€6,000.Thiscalculationisbasedonthetotalamountoftaxrevenueswhichcouldbeallocatedtothebasicincome,afterallowingforhealthcareandfewotheressentialpublicexpenditures.Thefurtherargumentis,thatdrasticincreasesintaxeswouldhavenegativeimpactoneconomicgrowth,andworsenthepovertysituation.31
30Cf.TheEconomist,2016b31Ibid.
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• UBIsendswrongincentives.Concernsareraisedthattheunconditionalpaymentswilldeterbeneficiariesfromseekingwork,provokingresentmentsamongtheworkingpopulation,havingtofinance‘parasites’.
• UBIfosters2-classsocieties.Concernsarealsoraised,thatUBIwouldfosterapolarizationofsocietyinalowincomeclasssurvivingonUBIwhileanelitehaswellpaidjobs.
• MigrationtoRicherCountriesmightbeSuppressed.Abasicincomewouldmakeitalmostimpossibleforcountriestohaveopenborders.Therighttoanincomewouldencouragerich-worldgovernmentseithertoshutthedoorstoimmigrants,ortocreatesecond-classcitizenrieswithoutaccesstostatesupport.32
• TheProblemofa‘nowork’society,whichUBIshouldhelpfix,hasnotyetmaterialized,andinthemeantime,alternativepoliciesexist,toachievesameresultsatlowercost.Existingpolicies,suchaswagesupplementsandEarnedIncomeTax,aswellasminimumwagescan
32Ibid.
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beeffectiveinhelpingpeoplestayoutofpoverty,andreinforceincentivestostayengagedinpaidwork.
BasicIncome(UBI)affordability.NosurprisethatoneofthemainconcernaboutaUniversalBasicincomeisitscost.Estimatingthefullcostrequiresverycomplexsimulations,involvingmanyvariables.Itisalsodifficulttoproperlyestimatealldirectandindirectconsequences,sincethereareonlyfewlimitedexperimentsofhowtheeconomicdynamicmaychangeonceUBIbeintroduced.
AccordingtoonerecentstudyonAlternativeUniversalBasicIncomeSchemesintheUK33:“ItisimpossibletodesignaUBIschemewhichisfiscallyfeasible,hasnoadversedistributionalconsequences,andissufficientlygeneroustoeliminatetheneedformeans-testing”
TheEconomist34ranasimplisticsimulationonhowmuchbasicincomeagovernmentcouldpayoutifitisscrappeditsnon-healthtransferpayments,andspreadthemevenlyacrossthepopulationinasinglepayment.Evidently,thissimulationdoesnottakeintoaccountsecondaryeffectsfromeconomicgrowth,andthedifferentformsoffinancingthebasicincome.
FinlandcomesoutneartothetopwithabasicincomeofUSD$10,500peryear,andindeedtheFinnishgovernmentisoneofthefewpilotingtheidea.TheEUaverageamountthatwouldbeavailableforbasicincomearound$7,500,downtoapprox.$5,000(Britain,Iceland,Greece,Portugal).
33Cf.Martinelli,201734Cf.TheEconomist,2016a
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TherearefewpracticalpilotsofUBIwithintheEU:
Thereareonlyveryfewpracticallargescaleandlong-termexperiments,inonly14countries,andofthoseinonly2caseswithasamplelargerthan2000participants(Canada1974to79,andIndia2011to13).35
OnepracticalpilotwhichiscurrentlybeingundertakeninFinland.FinlandiscurrentlytestingUBIwithagroupof2000unemployed,whoreceiveEuro560amonthbetween2017and2019,unconditionally,withnostringsattached.Thereactionsarequitevaried:
• Supportforthepilotcomesfrom,i.a.parttimeworkers,andunpaidwork(women,home,childcare)
• LaborUnionsdislikethepilotforfearthatstrategicimportanceofpaidworkwilldecline,andsotheirpoweraslaborunions.
• Thosemanagingunemploymentfunds(eg.laborunions)fearlossofcontroloffunds,ifdissolvedandreplacedbyUBI.
• BasicIncomeEarthNetwork,whichhaspromotedtheideaofbasicincomessincethe1980s,saysatwo-yearstudyistooshorttolearnhowthepsychologyofbeneficiarieschanges.36
SwitzerlandheldareferendumonUBIonJune5th,2016,inwhichtheSwissoverwhelminglyvotedtorejectaninitiativethatwouldhaveamendedtheconstitutionandrequiredthegovernmenttotakestepstowardsimplementingauniversalbasicincome—anunconditionalcashpaymentgiventoallcitizens.SupportershadfavoredanincomeofSFr2,500($2,500)permonth.
PopularsupportforUBIisGrowing
UBIisgainingpopularsupportwithintheEU–thisatleastisthefindingofa11,000citizensurveyin2016and2017.
Thekeyfindingsarethat(seeAnnex3forafullerdescriptionofthesurveyresults)37:
• 68%wouldsupportaUBI,ifareferendumwouldbeheldtoday,upfrom64%in2016• AmongsixlargeEUeconomies,Italyshowedstrongestsupport(above70%)andFrancethe
lowest(around60%),withUK,Spain,Germany,Polandinbetween.• Thethreemost‘convincing’pro-UBIargumentswere:“Itreducesanxietyaboutfinancing
basicneeds”(52%),“Itcreatesmoreequalityofopportunity”(42%),and“Itencouragesfinancialindependenceandself-responsibility”(32%).
• ThethreemostconvincingargumentsagainstUBIwere:“Foreignersmightcometomycountryandtakeadvantageofthebenefit”(39%,versus34%in2016),“Onlythepeoplewhoneeditmostshouldgetsomethingfromthestate”(34%),and“Itisimpossibletofinance”(34%).
35SeealsotheTEDxTalkonthesubjectdeliveredbyFedericoPistono:https://www.youtube.com/watch?v=A2aBKnr3Ep436Cf.TheEconomist,201737Cf.BIEN,2017
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7.3.4 Policy Options - Guaranteed Minimum Income (GMI)
MinimumIncomeschemesacrossEuropeplayavitalroleinalleviatingtheworstimpactsofpovertyandsocialexclusioninmanycountries.However,inmanycountriestheircontributionisstillmuchtoolimitedandprogresssince2009hasbeendisappointing.Oftenthelackofadequatepaymentscoupledwithlimitedcoverageandpoortake-up,dueinteraliatopooradministration,inadequateaccesstoinformation,excessivebureaucracyandstigmatizationmeansthattheyfallveryfarshortofensuringadecentlifeforthemostvulnerableinsociety.
TheadequacyandeffectivenessofGMIschemesareoneofthefundamentalbuildingblocksofensuringatrulySocialEuropeandtheyareakeyinvestmentinbuildingastrongersocietyandeconomy.
TheobjectiveoftheEuropeanCommissiontoensurea“triple-A”socialratingforEurope21couldbenefitfromstrengtheningtheadequacyandeffectivenessofGMIschemeswithinanoverallactiveinclusionapproach.38
7.3.4.1 Cases in Europe AGMIschemeexistinFrancesince1988anditisactuallynamed“Revenuedesolidaritèactive(RSA)”.Itisanincomeconditionedtotheactiveresearchofanewjobandisnotattributedindividually,buttakingintoaccountmanyfactors,likethefamilystatus,theexistingincome,etc.
Amountsthereforemayvary,butthemonthlyamountisapprox.€500forasinglecitizenandresident,upto€1080foracouplewith2children.
InItaly,inSeptember2017theso-called“RedditodiIncusione”wasintroducedbytheGovernment.Itisaguaranteedincomeofmax€485permonth,conditionedtotheadhesiontoaprojectforsocialandworkinclusion.
ThisGMIschemecoversnowadays400thousandfamilies(or1,5Mnpeople).InItalythereare4,5Mnpeoplein„absolutepoverty“.39
ItisnotablethatinItalytheverypopularproposalofthe5-StarMovementisnotaBasicIncomebutaGMI.Aminimumamountof€780wouldbegrantedonlyonaconditionalbasis,andwouldintegrateexistingincomes.
38Cf.Frazer&Marlier,201639Lessthan40%oftheequivalentnationalmedianincome
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7.3.4.2 Affordability at EU level
OneofthemostcomprehensiveanalysisofthevariousschemescurrentlyinplaceinEurope,andtheamountrequiredtoincreasetheaveragenationalGMIamountstovariouspovertythresholdisthestudy‘TowardsaEuropeanminimumincome’byRamónPeña-CasasandDalilaGhailani.40
Methodology.ItlooksatthefeasibilityofintroducingaEuropeaninstrumentrelatingtonon-contributoryminimumincomeschemesaimedatpeopleofworkingagewhoarefitforwork.Itthusdoesnotcoverminimumincomesforspecificcategories(theelderly,etc.)orminimumwages,whichareorganizedandmanagedbythesocialpartners,althoughtheymayberelevanttodiscussionsofcertainelementsofGMIscheme.Itanalysesdifferentscenarios,includingthoseconcerning:
• the40%povertythreshold,insofarasthisthresholdrepresentstheminimumtobeattainedtoeliminateextremepoverty;
• The60%thresholdwithatake-uprateof50%,whichprovidesanideaofwhatwouldneedtobedonetoGMIstoenablepeopletoleadadecentlifeaccordingtothestandardsofrelativepoverty.
Thresholdsof40,50and60%arerelatedtotheequivalentnationalmedianincome.Foreachofthesescenarios,ithasbeencalculatedthefollowing
• theamountrequiredtoincreasetheaveragenationalGMIamountstothepovertythreshold,
• thecurrentcostand• thetotalcostinvolvedinadjustingtheGMI,togetherwiththespendingoncurrent
recipients.• theproportions(asa%)oftheamountneededtobridgethegapandthetotaloutlay
comparedwitho thetotalgrossdisposablehouseholdincome,providesanideaoftheeffort
requiredintermsofnationalredistributionofhouseholdwealth,primarilyviathetaxsystem.
o thegrossdomesticproduct,makesitpossibletoassesswhatneedstobedoneintermsofredistributingthewealthofalltheeconomicoperatorsandtransactions.
Findings:differencesbetweenMemberStates,solidarity.ThereareconsiderabledifferencesbetweenMemberStatesintermsoftheaverageGMIlevelsandpovertythresholdsareclear.
AnanalysisofthedifferenceshighlightstheparticularcaseofDenmark,wheretheaverageGMIisalreadyabovethevariouspovertythresholds.
Thisisalsothecaseforsomecountriesasregardsthegapbetweenthe40%threshold(BE,IE,LU,LTandNL).ForsomecountriesthereisasubstantialgapbetweentheaverageGMIandthelowestpovertythresholdof40%,rangingfrom52%to66%(SK,BG,POandRO),whereasinothercountriestheGMIwouldneedtobeincreasedbybetween28%and45%(HU,EE,LV,PT,SE,CZandCY).Thereareonlyafewcountriesthatneedtomakeasmallincrease(lessthan10%)intheGMItoreachtheminimalpovertythreshold(AT,SI,UKFI).
40Cf.Peña-Casas&Ghailani,2013
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AsregardsthegapbetweentheGMIandthe60%threshold,alltheEUcountrieswouldhavetoincreasetheleveloftheGMI.Thefiguresrangefrom21%inIrelandto78%intheSlovakRepublic.
ItisthusclearthatthefinancialeffortrequiredvariesconsiderablyfromoneMemberStatetoanotherandthepovertythresholdconsidered,whichclearlyunderlinestheneedforsolidaritybetweenthecountries.
Inparticular,resourcesneededtoanincreasetowardsthe40%povertythreshold:
• TableA11intheappendixshowsscenarioA1(40%povertythresholdand50%take-uprate).• ApproximatelyEUR17.2billionwouldneedtobecommittedatEuropeanlevel(EU-25)totop
upthecurrentGMIssothattheywouldatleastreachtheextremepovertythreshold.• Thisamountseemsrelativelymodestcomparedwithtotalhouseholdwealth(0.31%)orthe
wealthofEuropeancountriesasawhole(0.19%ofGDP).• Thetotalcost(currentamount+increase)wouldbeequalto0.85%ofEuropeanhousehold
incomeand0.49%oftheMemberStates'totalwealth.
Inparticular,resourcesneededtoanincreasetowardsthe60%povertythreshold
• ThedatarelatingtoscenarioC1(60%povertythresholdand50%take-uprate)aresetoutintableA13.
• Contemplatingagoalsetatthe60%povertythresholdsignificantlyincreasesthefundingrequired.
• ThistakesthefigureupfromEUR17.2billiontonearly56billiontofundtheGMIincrease,whichisequivalentto0.9%ofEuropeanhouseholdincomeand0.56%ofEuropeanGDP.
• ThetotalcostoftheGMIsystemswouldincreasefromEUR48billionto86.7billion,whichwouldbeequaltoaEuropeanaverageof1.45%ofEuropeandisposablehouseholdincomeand0.85%ofthecountries'globalwealth.Again,whilsttheseamountsmightappearrelativelymodestcomparedwithEuropeans'totalwealth,thefinancialeffortrequiredfallsunequallyonEuropeanhouseholdsandcountries.
• Inseveralcountries(CY,EE,FR,NL,PL,SK)asumofbetween2to3.3%ofhouseholdincomeswouldneedtoberaised.WhilstinvestmentinGMIsystemswouldamounttolessthan1%ofGDPinthemajorityofEuropeancountries,inothers(CY,EE,FR,NL,PL,SK)between1.5to2%ofGDPwouldneedtobeinvested.
• ThisoncemoreunderlinestheneedforEuropeansolidarityonthisissuetoensurethattheGMIschemesplaytheirfullpartincombatingpovertyinEurope.
Inconclusion,lookingattheamountsthatwouldbeneededtoreachthe40%level,thisgoalseemsachievable:
• OnthequestionofwhetherGMIsareadequate,theminimumscenario(A1)wouldatleasthelptheMemberStatestoraisetheamountofexistingGMIsuptothe40%povertythreshold,whichequateswithsituationsofextremepoverty.• EUR17.2billion,or0.19%oftheEuropeanGDPwouldneedtoberaisedannuallyto
achievethisminimumobjective.
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• ThecurrenteffortmadebyMemberStatesintermsoftake-upwouldremainunchanged.
Lookingattheamountsthatwouldbeneededtoreachthe60%level,thefinancialeffortrequireddiffersindegreedependingonthecountryanditseemsdifficulttoimaginehowsomeofthemmightmakethiseffortontheirown.
• IncreasingtheleveloftheGMItothe60%threshold,evenwithanunchangedtake-uprate,wouldcallforaconsiderablygreaterfinancialeffort.
• ClosetoEUR56billionwouldneedtobemobilizedeachyeartoachievethisgoalandthatisdifficulttoenvisage.
• ItisalsonecessarytobearinmindthatsimplyraisingtheamountsoftheGMIschemestothe60%povertythresholdlevelwouldinsomewaybetantamounttoplacingtheentireburdenoferadicatingpovertyontheGMIschemeswhichisnotprimarilywhattheyareintendedtodo.Infact,theyconstitutearesiduaryelementofthewholesocialprotectionsysteminalloftheEUcountries,regardlessofthe"welfaremodels"towhichtheybelong.
Putmoreprosaically,inadditiontotheseprinciplesofsolidarityandsocialjustice,whichareverydifficulttoupholdinaperiodofeconomiccrisisandbudgetaryausteritythatEuropehasbeengoingthroughthesepastfewyears,socialsolidaritycanalsobeseenfromtheviewpointofeconomiclogic.
Conceptssuchas"activesocialinvestment"or"socialshockabsorbers",intendedtoshowthatsocialprotectionandthesolidaritythisinvolvescanalsoplayapositiveroleintheeconomicdevelopmentofEuropeanditsMemberstates,havethusblossomedatEuropeanlevel.Activesocialinvestmentisthusclearlypartofaneconomicapproach(returnoninvestment)forboostingindividuals'capacitiesforplayingafullpartinemploymentandeconomiclifeandcompetitiveness.
Howshoulditbefunded?Ahalf-waysolutionwouldbeafundfinancedattheEuropeanlevelandbyMemberStates,whereeachwouldcontributeinlinewithitsnationalwealth.
Conclusion
Inconclusion,„theadequacyandeffectivenessofMIschemesareoneofthefundamentalbuildingblocksofensuringatrulySocialEuropeandtheyareakeyinvestmentinbuildingastrongersocietyandeconomy.
TheobjectiveoftheEuropeanCommissiontoensurea“triple-A”socialratingforEurope21couldbenefitfromstrengtheningtheadequacyandeffectivenessofMIschemeswithinanoverallactiveinclusionapproach.41
41Cf.Frazer&Marlier,2016
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„…Aswehaveemphasisedseveraltimesinthisreport,theintroductionofaEuropeaninstrumentisnotsomuchaquestionofmoney,especiallyifamodestgoalofconvergingonaminimumthresholdof40%isset,asaquestionofpoliticalwillatnationalEuropeanlevels.“42
7.3.5 Proposed VOX Position
7.3.5.1 On Unconditional Basic Income (UBI) Itisanideawith1)broadintellectualbuy-inacrosstheconservativetoprogressivespectrum,2)withanequallyforcefulgroupofcritics,and3)withgrowingpopularity,includingwithinEUcountries.
Itwouldbetemptingtojumponthe‘band-waggon’ofbasicincome,torideaprogressivemessageofsocialjustice.ButitistooearlytohitchtheVOXEuropewagonbehindanideawhichhasnotyetmaturedandaboutwhichwedoknowtoolittle:
• Veryfewpracticallargescaleandlong-termexperiments–i.e.weknowtoolittle.• Toofewdataonimpactonpublicfinance,socialbenefits,labormarkets,andindividualnet
benefits.• Politicallynotyetbroadlyaccepted,withe.g.Swisshavingrejectedareferendumin2016,
thatwouldhaveenabledabasicincomeofSFR2,500(€2,175).
Itwouldbeequallywrongtorejecttheideaatthisstage,basedobjectionswhicharevalidintheshortterm(e.g.thehighfiscalcost),butmaybecomelessrelevantinthemediumandlongterm,whilethebenefitsmaybecomebetterdocumentedandmorerelevant,aspaidworkbecomesscarcewithautomatizationofproduction.
HenceVOXEuropeshouldpositionitselfwithanopenattitudepromotingapolicylearningapproacharoundthetwoprincipalaspectsofbasicincome:FreeMoneyforEveryone,i.e.unconditionalanduniversalincome.
VOXshouldactivelysupportwelldesignedexperimentsrunbylocalornationalinstitutionswithunconditionalbasicincometogainabetterunderstandingofUBIasapolicyinstrument.
• Experimentsneedtobesufficientlylarge(e.gwithatleast10,000participants),shouldhaveacontrolgrouptoarriveatmeaningfulresults,andshouldlastsufficientlylong(5yearsto10years)tocapturebehaviouralchangeswhichwouldnotoccurinshortprograms(eg.Ifparticipantknowsthatprogramendsafter2years).Theincomeshouldbetrueunconditionalincomeandadequatetomeetbasicneeds(e.g.abouthalfthemedianincome).
• Professionalscientificfeasibilitystudiesandimpactstudiesneedtoaccompanytheexperiments,toderivesolidresultstoinformfuturepolicymaking.
7.3.5.2 On Guaranteed Minimum Income (GMI)
VOXshouldadvocatethebroaderadoptionofMinimumIncome(conditioned)schemesacrossEU,initiallywithatleastamodestgoalofconvergingonaminimumpovertythresholdof40%ofthe
42Cf.Peña-Casas&Ghailani,2013
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equivalentnationalmedianincome(„extremepoverty“),whichresulttobeeconomicallyandpoliticallybearable,consideringthelimitedsolidarityrequiredbetweenstates.
Theseschemescanplayavitalroleinalleviatingtheworstimpactsofpovertyandsocialexclusioninmanycountries.Inaddition,itcanwellencouragefinancialindependenceandself-responsibility.
Whenpeople(forinstance:young,>50yrs)struggletofindajobinlinewiththeirskills,potentialoraspiration,theyoftenendacceptinganykindofjobormigrating,thuswastingpast(public)investmentsintheireducationandaddingdown-pressureonwages.
Ensuringaminimumincometothesepeoplecangivethemtimetoinvestonpersonalre-training,exploreself-employment,etc.andthuscomplementswelltheproposalslinkedtoLife-longlearning,suchas:
• EstablishaWorkActivityAccountforeveryone,automatically,whenthepersonturns18.Thisaccountaccompaniesapersonthroughoutitsactivelife.
• ProvideaStartCapitalorSocialInheritancetoeveryyoungperson,thats/hecanuseforprofessionalqualification,startingupabusiness,oratransitiontopart-timeforfamilyorpersonalreasons.
Asaguidingprinciple,VOXwantsto„putuniversalsocialprotectionandanadequateincomeatthecentreofEUPolicymaking’.
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8 Conclusion
Digitalization,globalization,anddemographicchangesaretransformingthenatureofworkandlabormarkets.ThisofferschallengesandopportunitiesforEurope.Inordertomanagewellthetransitiontowardsthe‘FutureofWork’,theEUwillhavetoundertakegreateffortstoalsobecomea‘SocialUnion’.
VOXadvocatesanEUwide“MarshallPlanonWorkandLife-longEmployability”asoneprogramtoputsuchSocialUnionintopractice,withthefollowingcomponents:
• FlexibilityandWork-LifeBalance
VOXsupportsaWorkingTimeChoiceActandbecometherecognizedpoliticalvoiceforthegrowingnumberofself-employed,start-ups,crowdandgigworkers.
• Life-longLearningforEmployability
VOXsupportsastrategytomove‘FromanUnemploymenttoanEmploymentInsurance’withare-orientationtowardsapreventiveschemefocusedonmaintainingemployability.
VOXadvocatestheimmediateadoptionof‘ErasmusPro’,aEuropeanapprenticeschemetofund200,000two-yearlongapprenticeshipsayear.
VOXEuropesupportsIndividualLong-TermAccountsthatsupportlife-longeducation,boostedbyaperiodicBonusforlive-longlearningandre-training.
• SocialProtectionandBasicIncomeVOXenvisionsuniversalsocialprotectionandanadequateincometobecomeacorepillarofEUPolicymaking.Thisrequiresalong-termperspectivecombinedwithshort-termactions.VOXadvocatesthestrengtheningofexistingGuaranteedMinimumIncome(GMI)schemesacrosstheEU,initiallywithatleastamodestgoalofconvergingonaminimumpovertythresholdof40%oftheequivalentnationalmedianincome(„extremepoverty“),withtheschemesconditionednotonlyonatraditionaljobsearch,butalsoonapossibledevelopmentofanewbusinessorevenan(unpaid)socialactivity(likementorship,etc.).VOXendorsestheideaofaStartCapitalforeveryyoungpersonintheEU.SuchstartcapitalcanbeseenasaSocialInheritance,thatenablesayoungpersontodevelopitstalents,choseacareerorstartupabusiness,independentlyofthesocialstatusandwealthoftheparents.VOXsupportslargescaleexperimentswithunconditionalbasicincome(UBI),toprovideasolidknowledgebasistodecideonthemeritsofthisnovelapproachtosocialprotection.
VOXEuropehastheopportunitytoprofileitselfasanadvocateforaEuropeanapproachtoSocialDevelopment,withpracticalminimumstandardsofsocialprotectionandofdecentworkandpay,leadingtowardsasuccessfuldigitaltransformationwhichcontributesbothtogreaterprosperityandbetterworkingconditionswithintheEU.
Foramoreextensivesummary,seethePolicySummaryatthebeginningofthisreport.
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9 Annexes
9.1 Annex 1: European Pillar of Social Rights
EuropeanPillarofSocialRights
ChapterI:Equalopportunitiesandaccesstothelabourmarket
1.Education,trainingandlife-longlearning
Everyonehastherighttoqualityandinclusiveeducation,trainingandlife-long
learninginordertomaintainandacquireskillsthatenablethemtoparticipatefullyin
societyandmanagesuccessfullytransitionsinthelabourmarket.
2.Genderequality
a.Equalityoftreatmentandopportunitiesbetweenwomenandmenmustbeensured
andfosteredinallareas,includingregardingparticipationinthelabourmarket,terms
andconditionsofemploymentandcareerprogression.
b.Womenandmenhavetherighttoequalpayforworkofequalvalue.
3.Equalopportunities
Regardlessofgender,racialorethnicorigin,religionorbelief,disability,ageorsexual
orientation,everyonehastherighttoequaltreatmentandopportunitiesregarding
employment,socialprotection,education,andaccesstogoodsandservicesavailable
tothepublic.Equalopportunitiesofunder-representedgroupsshallbefostered.
4.Activesupporttoemployment
a.Everyonehastherighttotimelyandtailor-madeassistancetoimproveemployment
orself-employmentprospects.Thisincludestherighttoreceivesupportforjobsearch,
trainingandre-qualification.Everyonehastherighttotransfersocialprotectionand
trainingentitlementsduringprofessionaltransitions.
b.Youngpeoplehavetherighttocontinuededucation,apprenticeship,traineeshipora
jobofferofgoodstandingwithin4monthsofbecomingunemployedorleaving
education.
c.Peopleunemployedhavetherighttopersonalised,continuousandconsistent
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support.Thelong-termunemployedhavetherighttoanin-depthindividual
assessmentatthelatestat18monthsofunemployment.
ChapterII:Fairworkingconditions
5.Secureandadaptableemployment
a.Regardlessofthetypeanddurationoftheemploymentrelationship,workershave
therighttofairandequaltreatmentregardingworkingconditions,accesstosocial
protectionandtraining.Thetransitiontowardsopen-endedformsofemploymentshall
befostered.
b.Inaccordancewithlegislationandcollectiveagreements,thenecessaryflexibility
foremployerstoadaptswiftlytochangesintheeconomiccontextshallbeensured.
c.Innovativeformsofworkthatensurequalityworkingconditionsshallbefostered.
Entrepreneurshipandself-employmentshallbeencouraged.Occupationalmobility
shallbefacilitated.
d.Employmentrelationshipsthatleadtoprecariousworkingconditionsshallbe
prevented,includingbyprohibitingabuseofatypicalcontracts.Anyprobationperiod
shouldbeofreasonableduration.
6.Wages
a.Workershavetherighttofairwagesthatprovideforadecentstandardofliving.
b.Adequateminimumwagesshallbeensured,inawaythatprovideforthe
satisfactionoftheneedsoftheworkerandhis/herfamilyinthelightofnational
economicandsocialconditions,whilstsafeguardingaccesstoemploymentand
incentivestoseekwork.In-workpovertyshallbeprevented.
c.Allwagesshallbesetinatransparentandpredictablewayaccordingtonational
practicesandrespectingtheautonomyofthesocialpartners.
7.Informationaboutemploymentconditionsandprotectionincaseofdismissals
a.Workershavetherighttobeinformedinwritingatthestartofemploymentabout
theirrightsandobligationsresultingfromtheemploymentrelationship,includingon
probationperiod.
b.Priortoanydismissal,workershavetherighttobeinformedofthereasonsandbe
grantedareasonableperiodofnotice.Theyhavetherighttoaccesstoeffectiveand
impartialdisputeresolutionand,incaseofunjustifieddismissal,arighttoredress,
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includingadequatecompensation.
8.Socialdialogueandinvolvementofworkers
a.Thesocialpartnersshallbeconsultedonthedesignandimplementationof
economic,employmentandsocialpoliciesaccordingtonationalpractices.Theyshall
beencouragedtonegotiateandconcludecollectiveagreementsinmattersrelevantto
them,whilerespectingtheirautonomyandtherighttocollectiveaction.Where
appropriate,agreementsconcludedbetweenthesocialpartnersshallbeimplemented
attheleveloftheUnionanditsMemberStates.
b.Workersortheirrepresentativeshavetherighttobeinformedandconsultedingood
timeonmattersrelevanttothem,inparticularonthetransfer,restructuringandmerger
ofundertakingsandoncollectiveredundancies.
c.Supportforincreasedcapacityofsocialpartnerstopromotesocialdialogueshallbe
encouraged.
9.Work-lifebalance
Parentsandpeoplewithcaringresponsibilitieshavetherighttosuitableleave,flexible
workingarrangementsandaccesstocareservices.Womenandmenshallhaveequal
accesstospecialleavesofabsenceinordertofulfiltheircaringresponsibilitiesandbe
encouragedtousetheminabalancedway.
10.Healthy,safeandwell-adaptedworkenvironmentanddataprotection
a.Workershavetherighttoahighlevelofprotectionoftheirhealthandsafetyat
work.
b.Workershavetherighttoaworkingenvironmentadaptedtotheirprofessional
needsandwhichenablesthemtoprolongtheirparticipationinthelabourmarket.
c.Workershavetherighttohavetheirpersonaldataprotectedintheemployment
context.
ChapterIII:Socialprotectionandinclusion
11.Childcareandsupporttochildren
a.Childrenhavetherighttoaffordableearlychildhoodeducationandcareofgood
quality.
b.Childrenhavetherighttoprotectionfrompoverty.Childrenfromdisadvantaged
backgroundshavetherighttospecificmeasurestoenhanceequalopportunities.
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12.Socialprotection
Regardlessofthetypeanddurationoftheiremploymentrelationship,workers,and,
undercomparableconditions,theself-employed,havetherighttoadequatesocial
protection.
13.Unemploymentbenefits
Theunemployedhavetherighttoadequateactivationsupportfrompublic
employmentservicesto(re)integrateinthelabourmarketandadequateunemployment
benefitsofreasonableduration,inlinewiththeircontributionsandnationaleligibility
rules.Suchbenefitsshallnotconstituteadisincentiveforaquickreturnto
employment.
14.Minimumincome
Everyonelackingsufficientresourceshastherighttoadequateminimumincome
benefitsensuringalifeindignityatallstagesoflife,andeffectiveaccesstoenabling
goodsandservices.Forthosewhocanwork,minimumincomebenefitsshouldbe
combinedwithincentivesto(re)integrateintothelabourmarket.
15.Oldageincomeandpensions
a.Workersandtheself-employedinretirementhavetherighttoapension
commensuratetotheircontributionsandensuringanadequateincome.Womenand
menshallhaveequalopportunitiestoacquirepensionrights.
b.Everyoneinoldagehastherighttoresourcesthatensurelivingindignity.
16.Healthcare
Everyonehastherighttotimelyaccesstoaffordable,preventiveandcurativehealth
careofgoodquality.
17.Inclusionofpeoplewithdisabilities
Peoplewithdisabilitieshavetherighttoincomesupportthatensureslivingindignity,
servicesthatenablethemtoparticipateinthelabourmarketandinsociety,andawork
environmentadaptedtotheirneeds.
18.Long-termcare
Everyonehastherighttoaffordablelong-termcareservicesofgoodquality,in
particularhome-careandcommunity-basedservices.
19.Housingandassistanceforthehomeless
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a.Accesstosocialhousingorhousingassistanceofgoodqualityshallbeprovidedfor
thoseinneed.
b.Vulnerablepeoplehavetherighttoappropriateassistanceandprotectionagainst
forcedeviction.
c.Adequateshelterandservicesshallbeprovidedtothehomelessinordertopromote
theirsocialinclusion.
20.Accesstoessentialservices
Everyonehastherighttoaccessessentialservices.
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9.2 Annex 2: Legal Regulations on the Organization of Working Time: The European Working Time Directive
TheEuropeanWorkingTimeDirectivestipulatesthattheaverageworkingtimeforeach
seven-dayperiod,includingovertime,maynotexceed48hours.Inaddition,
everyworkerisentitledtoaminimumdailyrestperiodof11consecutivehours
per24-hourperiod.TheGermanWorkingTimeAct(Arbeitszeitgesetz)aims,
amongotherthings,toensurethehealthandsafetyofworkersandtodesign
theframeworkforflexibleworkingtimewiththisinmind.TheActistherefore
basedontheprincipleofaneight-hourdayandsixworkingdaysperweek.
Workingtimeonaworkingdaycanbeextendedtouptotenhourswithoutany
specialjustification.Theremustbeanoffset,reducingtheaverageworking
timetoeighthours,withinsixcalendarmonthsor24weeks.Workersareentitled
toanuninterrupted11-hourrestperiodaftertheendoftheirdailyworking
time.Inprinciple,Sundayistheweeklyrestday.
Itispossibleforworkingtimetoexceedtenhours.Acollectiveagreement
canstipulatethat,forexample,workingtimeisextendedtoovertenhourson
workingdaysinthecaseofreadinessforwork(e.g.securityservices)oron-call
service(e.g.hospitals,worksfirebrigades),andinspecialcircumstancesthisis
alsopossiblewithoutthisextensionbeingoffset(opt-out).Therearealsocertain
sectors(agriculture;treatment-,long-termcareandcare-services;publicservice)
wherelongerworkingtimescanbepermittedbymeansofacollectiveagreement.
Inaddition,thesupervisoryauthoritiescanpermitlongerdailyworking
timesincertaincases,forexampleforshiftwork,constructionandassembly
sites,andseasonalandcampaign-basedwork.
Derogationsfromthe11-hourdailyrestperiodarealsopossible.Forexample,
insomesectors(e.g.medical,long-termcareandcarefacilities,thehospitality
sector,transportbusinesses,agricultureandlivestockfarming)therestperiod
canbereducedtotenhours,ifthereductionisoffsetwithinfourweeksbythe
extensionofanotherrestperiodtoatleast12hours.Acollectiveagreement
canalsostipulateareductionofuptotwohoursintherestperiod,resultingin
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anine-hourperiod,providedthatthisisrequiredbythetypeofwork.Moreover,
socialpartnerscanallowforcorrespondingregulationstobeintroducedinaworks
agreementoranagreementbetweentheemployerandstaffcouncil.
Ifemployeesworkintheirleisuretime(restperiod),thismust,inprinciple,
beregardedasworkingtimewithinthecontextoftheWorkingTimeAct.The
employerisresponsibleforensuringthatworkingtimesexceedingeighthours
onworkingdaysarerecorded.Ingeneral,theemployerhasanobligationto
ensurethatemployeescomplywiththestatutoryregulations.TheWorkingTime
Actdoesnotapplytoseniorstaff,however.
Intheeventthatthestipulatedrestperiod,generallyelevenhours,isinterrupted,
itstartsagainfromzero.TheEUWorkingTimeDirectiveoffersnoleeway
fora“deminimisarrangement”forshortinterruptions(e.g.writingane-mail).
Occupationalsafetyandhealthprovisions,aslaiddownintheSafetyand
HealthatWorkAct(Arbeitsschutzgesetz)andtheassociatedordinances,play
animportantroleinshapingspecificworkingconditions.Riskassessments
mustalsobecarriedouttoidentifytherisksofmobileworking,enablingthe
employerandworkscounciltorespondbyadoptinghealthandsafetymeasures
andworkplace-levelregulations.
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9.3 Annex 3: Survey on European Attitudes towards Unconditional Basic Income
Surveyof11,000Europeansfinds68%wouldvoteforbasicincome
Source:http://basicincome.org/news/2017/05/survey-of-11000-europeans-finds-68-would-vote-for-
basic-income/
DaliaResearchhasreleasedtheresultsofitssecondmajorsurveyonattitudestowardbasic
income,pollingover11,000individualsfromacrosstheEuropeanUnion.
DaliaResearch,aBerlin-basedmarketresearchcompany,conducteditsfirstsurveyof
Europeans’attitudesonbasicincomeinMarch2016,whichyieldedthewidelypublicizedresult
that64%ofEuropeanswouldvoteforabasicincomereferendumifonewereimmediatelyheld
intheircountry.Thecompanynowplanstoconductsuchasurveyannually,andhaslately
releasedtheresultsofitssecondsurvey,conductedinMarch2017.
Foritsmostrecentbasicincomesurvey,DaliaResearchinterviewed11,021peoplebetweenthe
agesof14and65,selectedfromall28EUmemberstates(aslightlylargersamplethanwasused
inits2016study,whichsampled10,000fromthesameagegroupandgeographicalregions).The
surveywasdesignedtobecensusrepresentative,meaningthatthesamplewasselectedand
dataweightedtoreflecttheoveralldemographiccharacteristicsoftheEUascloselyaspossible,
withrespecttoregion,age,gender,educationlevel,andrural/urbanstatus.
Thesurveyhasamarginoferrorofplusorminus1.1%ata95%confidencelevel(thatis,the
surveywasdesignedsuchthat,ifitwereconductedrepeatedly,thenon95%ofoccasionsthe
estimatedlevelofpopularsupportforbasicincome,forexample,wouldliewithin1.1
percentagepointsoftheactuallevelsupportamongallEuropeans).
Surveyrespondentswerefirstposedthequestion“Howfamiliarareyouwiththeconceptknown
asbasicincome?”Thisquestionwasaskedpriortopresentinganydefinitionoftheterm.
Inresponse,24%claimedto“understanditfully,”withanother39%claimingto“know
somethingaboutit.”Another25%ofrespondentsstatedthatthey“haveheardjustalittleabout
basicincome,”and13%claimedto“knownothingaboutit.”Comparingthesedatatothe2016
survey,thepercentageofrespondentsindicatedthattheyknow“somethingabout”theidea
increasedsignificantly(upfrom35%),whilethepercentagewhohad“neverheardofit”
decreasedsignificantly(downfrom17%).
Followingthispreliminaryquestion,surveyrespondentswerepresentedwithadefinitionof
‘basicincome’tobeassumedfortheremainedofthesurvey:“Abasicincomeisanincome
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unconditionallypaidbythegovernmenttoeveryindividualregardlessofwhethertheyworkand
irrespectiveofanyothersourcesofincome.Itreplacesothersocialsecuritypaymentsandis
highenoughtocoverallbasicneeds(food,housingetc.).”Thisis,verbatim,thesamedefinition
adoptedbyDaliaResearchforits2016survey.
ItshouldbenotedthatDalia’sdefinitiondiffersfromBIEN’sand,indeed,ismorestrict.Unlike
thedefinitionusedbyDalia,BIEN’sdefinitiondoesnotstipulatethatthebasicincomemustbe
“highenoughtocoverallbasicneeds”northatthebasicincomemust“replaceothersocial
securitypayments.”Thus,anypolicythatmeetsthesurvey’sdefinitionof‘basicincome’isa
policythatBIENwouldalsocountassuch;however,thesurveydoesnotencompasseverypolicy
thatBIENwouldconsiderabasicincome.
Withthisdefinitioninplace,DaliaResearchaskedfivefurtherquestions:
1.“Iftherewouldbeareferendumonintroducingbasicincometoday,howwouldyouvote?”
2.“Atwhatpointdoyouthinkyourcountryshouldintroducebasicincome?”
3.“WhichoftheargumentsFORbasicincomedoyoufindconvincing?”
4.“WhichofthefollowingargumentsAGAINSTthebasicincomedoyoufindconvincing?”
5.“Whatcouldbethemostlikelyeffectofbasicincomeonyourworkchoices?”
SupportforaBasicIncomeReferendum
Inresponsetothefirstquestion,68%ofrespondentssaidthatifareferendumonbasicincome
wasintroducednow,theywouldvoteforit.In2016,thisnumberstoodat64%.Thus,takinginto
accountthemarginoferror,supportforbasicincomeappearstohaveincreasedslightlyacross
theEUinthepastyear.Meanwhile,theproportionwhosaidthattheywouldopposethe
referendumremainedstable,at24%.
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ComparingresponsesbetweenthesixlargestEuropeancountries,DaliaResearchfoundthat
supportwashighestinItaly,wheretheproportionofrespondentswillingtovoteforabasic
incomereferendumincreasedbysixpercentagepointssince2016,overtakingthelevelof
supportinSpain(whichhadshowedthehighestlevelofsupportin2016).
TheUK(whichsawanincreaseinsupportofsevenpercentagepoints),Spain,andGermanyall
standataround68-69%support.
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WhenDoEuropeansWantBasicIncome?
Although24%ofrespondentssaidthattheywouldvoteagainstabasicincomereferendumheld
atpresent,only8%statedthattheythinkthattheircountryshouldneverintroduceabasic
income,withanadditional13%notfavoringthepolicyfor“anytimeinthenearfuture.”
Atthesametime,33%supportedabasicincome“assoonaspossible”intheirrespective
countries,withotherspreferringtowaitforsuccessfulexperimentsintheirowncountry(32%)
orinothercountries(16%).
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ArgumentsForandAgainst
Inthenexttwoquestions,respondentsweresuppliedwithlistsofsixreasonsthatmightbe
givenfororagainstabasicincome(respectively)andpermittedtoselectasmanyasthey
believedtobe“convincing.”
Outofthelistedargumentsforbasicincome,thethreethatwerejudgedconvincingbythe
greatestproportionofsurveyrespondentswere:“Itreducesanxietyaboutfinancingbasic
needs”(52%),“Itcreatesmoreequalityofopportunity”(42%),and“Itencouragesfinancial
independenceandself-responsibility”(32%).
Thesewerealsofoundtobethethreemostpopular“for”argumentsinthe2016survey,which
examinedthesamelistofarguments(bothproandcon).However,theproportionof
respondentswhojudgedthemconvincingincreasedfrom40%,31%,and23%,respectively.The
levelofsupportfortheremainingthreeargumentsalsoincreased(from21%,21%,and16%,
respectively).
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Whenconsideringtheopposingviews,52%ofrespondents“foundconvincing”theargument
thatabasicincome“mightencouragepeopletostopworking”.Thiswasalsotheargument
againstbasicincomethatappearstohaveseenthegreatestincreaseinitsattractionsincethe
2016poll,when43%ofrespondentsconsidereditconvincing.
Thenextmostpersuasiveargumentsagainstbasicincome,outofthosetested,were“Foreigners
mightcometomycountryandtakeadvantageofthebenefit”(39%foundconvincing,versus
34%in2016),“Onlythepeoplewhoneeditmostshouldgetsomethingfromthestate”(34%,vs
32%in2016),and“Itisimpossibletofinance”(34%,vs32%in2016).
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Outofthosesurveyed,16%foundnoneofthesixgiven“for”argumentstobeconvincing(in
comparisonto22%in2016),and12%foundnoneoftheprovided“against”argumentstobeso
(incomparisonto15%).
“WhatWouldYouDo…?”
Forthefinalquestion(“Whatcouldbethemostlikelyeffectofbasicincomeonyourwork
choices?”),respondentswererequiredtoselectonlyoneoptionfromalistofresponses.Here,
37%ofrespondentsclaimedthatbasicincomewouldnotaffecttheirworkchoices,while17%
claimedthattheywouldspendmoretimewithfamily.Thethirdmostcommonresponsewas
“Noneoftheabove.”
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Onecomplicationtointerpretingthesedataliesinfactthat,althoughselectionwasexclusive
(respondentscouldchooseonlyoneanswer),manyoftheanswersdescribebehaviorsthatare
compatible.Togivejustoneexample,apersonwhochosesto“spendmoretimewithfamily”or
“domorevolunteeringwork”wouldpresumablyalsobelikelyto“workless”asmeansof
securingthisend;however,“workless”waspresentedadistinctoption.Itwouldthusbe
misleading,forexample,topresenttheresultsofthequestionbyclaimingthat“only11%would
stopworkingorworkless,”sinceotherresponseoptionsarecompatiblewiththesechoices(and
mightevenpresupposethatrespondentsplantospendlesstimeinpaidwork).
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10 List of References
BIEN–BasicIncomeNetwork(2017)“Surveyof11,000Europeansfinds68%wouldvoteforbasicincome”,availableat:http://basicincome.org/news/2017/05/survey-of-11000-europeans-finds-68-would-vote-for-basic-income/[Accessed10November2017]
BMAS-GermanMinistryofLaborandSocialAffairs(2017)“WeissbuchWorking4.0”,Englishtextavailableat:http://www.bmas.de/SharedDocs/Downloads/EN/PDF-Publikationen/a883-white-paper.pdf?__blob=publicationFile&v=3[Accessed7November2017]
Delors,J.etal.(2015)“ErasmusPro:ForaMillion‘YoungEuropeanApprentices’by2020”,JacquesDelorsInsitute,availableat:http://www.institutdelors.eu/media/youthemployment-jdi-may15.pdf?pdf=ok[Accessed7November2017]
DJB–DeutscherJuristinnenbund(2016)“KonzeptioneinesWahlarbeitszeitgesetzes”,availableat:https://www.djb.de/themen/wahlarbeitszeit/wazg-konzept/#_ftn9[Accessed10November2017]
Dreger,C.etal.(2015)“WageandIncomeInequalityintheEuropeanUnion”,studyfortheEMPLCommittee,availableat:http://www.ub.edu/irea/european.pdf[Accessed10Novemner2017]
EuropeanCommission(2015)“EmploymentandSocialDevelopmentsinEurope2014”,availableathttp://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=7736[Accessed10November2017]
EuropeanCommission(2017)“CommissionRecommendationof26.4.2017ontheEuropeanPillarofSocialRights”,availableat:https://ec.europa.eu/commission/publications/commission-recommendation-establishing-european-pillar-social-rights_de[Accessed10November2017]
Frazer,H.&Marlier,E.(2016)“MinimumincomeschemesinEurope:Astudyofnationalpolicies”,EuropeanSocialPolicyNetwork(ESPN),availableat:ec.europa.eu/social/BlobServlet?docId=15304&langId=en[Accessed10November2017]
Healy,S.(2017)“StrategiestocombatpovertyandgeneratedecentemploymentintheEuropeanUnion”,PresentationatUNExpertGroup,availableat:https://www.un.org/development/desa/dspd/wp-content/uploads/sites/22/2017/04/2017-05-01-UN-paper-Sean-Healy-FINAL.pdf[Accessed10November2017]
Manyika,J.(2017)“Technology,Jobs,andtheFutureofWork”,ExecutiveBriefing,McKinseyGlobalInstitute,availableat:https://www.mckinsey.com/global-themes/employment-and-growth/technology-jobs-and-the-future-of-work[Accessed10November2017]
Martinelli,L.(2017)“TheFiscalandDistributionalImplicationsofAlternativeUniversalBasicIncomeSchemesintheUK”,IPRWorkingPaper,availableat:http://www.bath.ac.uk/publications/the-fiscal-and-distributional-implications-of-alternative-universal-basic-income-schemes-in-the-uk/attachments/Basic_Income_Working_Paper.pdf[Accessed10November2017]
Peña-Casas,R.&Ghailani,D.(2013)“TowardsaEuropeanMinimumIncome”,FinalreportfortheEuropeanEconomicandSocialCommittee,availableat:http://www.eesc.europa.eu/resources/docs/qe-02-13-510-en-c.pdf[Accessed10November2017]
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Rinaldi,D.etal.(2016)“AnewstartforSocialEurope”,ReportfortheJacquesDelorsInstitute,availableat:http://www.institutdelors.eu/media/newstartsocialeurope-rinaldi-jdi-feb16.pdf?pdf=ok[Accessed7November2017]
TheEconomist(2016a)“Universalbasicincomes:Sighingforparadisetocome”,availableat:https://www.economist.com/news/briefing/21699910-arguments-state-stipend-payable-all-citizens-are-being-heard-more-widely-sighing[Accessed10November2017]
TheEconomist(2016b)“TheEconomistexplains:Universalbasicincomes”,availableat:https://www.economist.com/blogs/economist-explains/2016/06/economist-explains-4[Accessed10November2017]
TheEconomist(2017)“Northernpilot:Finlandtestsanewformofwelfare”,availableat:https://www.economist.com/news/business-and-finance/21723759-experiment-effect-offering-unemployed-new-form[Accessed10November2017]