The interaction of labor market regulation and labor market policies in welfare state reform

"Employment protection legislation, unemployment benefits and active labor market policy are Janus-faced institutions. On the one hand they are devices of insurance against labor market risk that provide income and employment security. On the other hand they influence the capacities of labor markets to adapt to changing economic conditions since institutional features of the welfare state also affect actors' economic adaptation strategies. Insufficient labor market adaptability results in higher and more persistent unemployment. Hence, in order to increase the adaptability of European labor markets, reforms had to address these closely interacting policy areas. The first aim of the paper is to describe recent reforms of employment protection, unemployment insurance and active labor market policies in different European welfare states (Denmark, Sweden, the United Kingdom, Switzerland, the Netherlands, Spain and Germany). The paper shows whether and to what extent national policy patterns converge in the direction of a new balance of flexibility and security with employment protection being eased and labor market policies being 'activated' through a combination of 'carrots and sticks'. Secondly, in terms of the political economy of welfare state reforms, the paper will answer the question whether consistent reforms of the three institutions are more likely in political systems characterized by relative strong government and/or social partnership since such institutional prerequisites may favor 'package deals' across policy areas." (Author's abstract, IAB-Doku) ((en))aktivierende Arbeitsmarktpolitik, Sozialpolitik - Reform, Sozialstaat - internationaler Vergleich, Arbeitsschutzpolitik, Beschäftigungssicherung, Arbeitslosenunterstützung, Sozialstaat, Regulierung, institutionelle Faktoren, politisches System, politischer Wandel, Dänemark, Schweden, Großbritannien, Schweiz, Niederlande, Spanien, Bundesrepublik Deutschland

Activation policies in Germany : from status protection to basic income support

"This paper provides an overview of the sequential shift towards activating labour market and social policy in Germany. It not only shows the changes in the instruments of active and passives labour market policies but also analyzes the implications of this change for the political economy, the governance and the legal structure of a 'Bismarckian' welfare state. Our study points at the changes in Germany's status- and occupation-oriented unemployment benefit regime that has been relinquished for a larger share of dependent population. Unemployment insurance benefit duration is shorter now and newly created basic income support for needy persons is not earnings-related anymore. Pressure on unemployed to take up jobs has increased considerably while more persons than before have access to employment assistance. The paper also aims at a preliminary assessment of the effects of activating labour market policy on labour market as well as social outcomes and sets out probable paths of future adaptation." (Author's abstract, IAB-Doku) ((en))Arbeitsmarktpolitik, Sozialpolitik, Reformpolitik, Hartz-Reform, aktivierende Arbeitsmarktpolitik, aktivierende Sozialpolitik, Aktivierung, Leitbild, Wohlfahrtsstaat, Arbeitslosenunterstützung, Sozialleistungen, Leistungsanspruch, Leistungsbezug, Anspruchsvoraussetzung, Leistungshöhe, Grundsicherung nach SGB XII, Grundsicherung nach SGB II, Zielgruppe, Arbeitslosengeld II-Empfänger, Erwerbsfähigkeit, Sanktion, Arbeitslose, Existenzminimum, Eigentum, Berufswahlfreiheit, Arbeitsverwaltung, Kompetenzverteilung, organisatorischer Wandel, Job-Center, ARGE, aktivierende Arbeitsmarktpolitik - Erfolgskontrolle, öffentliche Ausgaben, Armut, politischer Wandel, Politikumsetzung

Evaluating Labour Market Policy

Labour market institutions are deemed to have a great influence on the level and structure of employment. This holds for regulation on employment protection, minimum wages or tax/benefit systems as well as active labour market policies. This is why policy makers implement labour market reforms in order to stimulate job creation. The hope linked to labour market reforms is a sustainable reduction of structural and cyclical unemployment. This chapter reviews major approaches and findings on the evaluation of the impact of different labour market institutions but pays particular attention to active labour market policies that play an important role in the portfolio of economic policy makers in many OECD countries for several decades. Rigorous evaluation in this field has grown rapidly since the early 2000s. Describing concrete evaluation studies we focus on the important role of good data, methodological problems and discuss the impact on participants as well as possible effects on non-participants. We further describe how to investigate whether a programme also achieved positive net effects at a macroeconomic level. Finally, we have a closer look on policy implications and interactions with other institutional features

The interaction of labor market regulation and labor market policies in welfare state reform

Employment protection legislation, unemployment benefits and active labor market policy are Janus-faced institutions. On the one hand they are devices of insurance against labor market risk that provide income and employment security. On the other hand they influence the capacities of labor markets to adapt to changing economic conditions since institutional features of the welfare state also affect actors' economic adaptation strategies. Insufficient labor market adaptability results in higher and more persistent unemployment. Hence, in order to increase the adaptability of European labor markets, reforms had to address these closely interacting policy areas. The first aim of the paper is to describe recent reforms of employment protection, unemployment insurance and active labor market policies in different European welfare states (Denmark, Sweden, the United Kingdom, Switzerland, the Netherlands, Spain and Germany). The paper shows whether and to what extent national policy patterns converge in the direction of a new balance of flexibility and security with employment protection being eased and labor market policies being 'activated' through a combination of 'carrots and sticks'. Secondly, in terms of the political economy of welfare state reforms, the paper will answer the question whether consistent reforms of the three institutions are more likely in political systems characterized by relative strong government and/or social partnership since such institutional prerequisites may favor 'package deals' across policy areas

Contingent convergence: a comparative analysis of activation policies

The trend towards activation has been one of the major issues in recent welfare and labour market reforms in Europe and the US. Despite considerable initial variation across national models with respect to the scope and intensity of activation, redefining the link between social protection and labour market policies on the one hand and employment on the other has been a common issue in labour market reforms. The paper shows the development of activation policies in terms of basic principles, instruments, target groups and governance in Germany, France, the Netherlands, Switzerland, the United Kingdom, the US, Sweden and Denmark. It assesses the effectiveness and efficiency of activation policies in terms of bringing the jobless into work and ensuring sustainable independence from social benefits. Based on national activation trajectories, the paper argues that we can observe a contingent convergence of instruments, target groups, governance modes and outcomes so that established typologies of activation strategies have to be questioned

The interaction of labor market regulation and labor market policies in welfare state reform

Employment protection legislation, unemployment benefits and active labor market policy are Janus-faced institutions. On the one hand they are devices of insurance against labor market risk that provide income and employment security. On the other hand they influence the capacities of labor markets to adapt to changing economic conditions since institutional features of the welfare state also affect actors' economic adaptation strategies. Insufficient labor market adaptability results in higher and more persistent unemployment. Hence, in order to in-crease the adaptability of European labor markets, reforms had to address these closely inter-acting policy areas. The first aim of the paper is to describe recent reforms of employment protection, unemployment insurance and active labor market policies in different European welfare states (Denmark, Sweden, the United Kingdom, Switzerland, the Netherlands, Spain and Germany). The paper shows whether and to what extent national policy patterns converge in the direction of a new balance of flexibility and security with employment protection being eased and labor market policies being activated through a combination of carrots and sticks. Secondly, in terms of the political economy of welfare state reforms, the paper will answer the question whether consistent reforms of the three institutions are more likely in political systems characterized by relative strong government and/or social partnership since such institutional prerequisites may favor package deals across policy areas

The interaction of labor market regulation and labor market policies in welfare state reform

"Employment protection legislation, unemployment benefits and active labor market policy are Janus-faced institutions. On the one hand they are devices of insurance against labor market risk that provide income and employment security. On the other hand they influence the capacities of labor markets to adapt to changing economic conditions since institutional features of the welfare state also affect actors' economic adaptation strategies. Insufficient labor market adaptability results in higher and more persistent unemployment. Hence, in order to in-crease the adaptability of European labor markets, reforms had to address these closely inter-acting policy areas. The first aim of the paper is to describe recent reforms of employment protection, unemployment insurance and active labor market policies in different European welfare states (Denmark, Sweden, the United Kingdom, Switzerland, the Netherlands, Spain and Germany). The paper shows whether and to what extent national policy patterns converge in the direction of a new balance of flexibility and security with employment protection being eased and labor market policies being 'activated' through a combination of 'carrots and sticks'. Secondly, in terms of the political economy of welfare state reforms, the paper will answer the question whether consistent reforms of the three institutions are more likely in political systems characterized by relative strong government and/or social partnership since such institutional prerequisites may favor 'package deals' across policy areas." (author's abstract)Arbeitsschutzgesetzgebung, Arbeitslosenunterstützung und aktive Arbeitsmarktpolitik sind janusköpfige Institutionen. Einerseits handelt es sich dabei um Versicherungsinstrumente gegen die Arbeitsmarktrisiken, indem sie für Einkommen und Beschäftigungssicherheit sorgen, andererseits nehmen sie Einfluss auf die Fähigkeiten des Arbeitsmarktes, sich an die wechselnden ökonomischen Bedingungen anzupassen, da die institutionellen Bedingungen des Sozialstaats auch Auswirkungen auf die ökonomischen Anpassungsstrategien der Handelnden haben. Eine unzureichende Anpassungsfähigkeit des Arbeitsmarktes führt zu höherer und länger andauernder Arbeitslosigkeit. Um die Anpassungsfähigkeit der europäischen Arbeitsmärkte zu verbessern, müssen die notwendigen Reformen diese eng miteinander verbundenen und interagierenden Politikbereiche berücksichtigen. Die Arbeit liefert zunächst eine Beschreibung der jüngsten Reformen auf dem Gebiet des Arbeitsschutzes, der Arbeitslosenunterstützung und der aktiven Arbeitsmarktpolitik in verschiedenen europäischen Sozialstaaten (Dänemark, Schweden, Großbritannien, Schweiz, Niederlande, Spanien und Deutschland). Dabei wird gezeigt, ob und in welchem Maße nationale Politikmuster in Richtung auf eine neue Balance zwischen Flexibilität und Sicherheit konvergieren, wobei der Arbeitsschutz gelockert wird und bei der Arbeitsmarktpolitik Aktivierung durch "Zuckerbrot und Peitsche" im Vordergrund steht. In einem zweiten Schritt gibt die Arbeit mittels einer volkswirtschaftlichen Sicht auf die Reformen des Sozialstaats Antwort auf die Frage, ob konsequente Reformen aller drei Institutionen eher in politischen Systemen mit einer relativ starken Regierung und/oder Sozialpartnern möglich sind, weil solche institutionellen Voraussetzungen "Paketlösungen" über unterschiedliche Politikfelder hinweg begünstigen können. (IAB

Activation policies in Germany: from status protection to basic income support

This paper provides an overview of the sequential shift towards activating labor market and social policy in Germany. It not only shows the changes in the instruments of active and passives labor market policies but also analyzes the implications of this change for the political economy, the governance and the legal structure of a Bismarckian welfare state. Our study points at the changes in Germany's status- and occupation-oriented unemployment benefit regime that has been relinquished for a larger share of dependent population. Unemployment insurance benefit duration is shorter now and newly created basic income support for needy persons is not earnings-related anymore. Pressure on unemployed to take up jobs has increased considerably while more persons than before have access to employment assistance. The paper also aims at a preliminary assessment of the effects of activating labor market policy on labor market as well as social outcomes and sets out probable paths of future adaptation

Activation policies in Germany: from status protection to basic income support

"This paper provides an overview of the sequential shift towards activating labour market and social policy in Germany. It not only shows the changes in the instruments of active and passives labour market policies but also analyzes the implications of this change for the political economy, the governance and the legal structure of a 'Bismarckian' welfare state. Our study points at the changes in Germany's status- and occupation-oriented unemployment benefit regime that has been relinquished for a larger share of dependent population. Unemployment insurance benefit duration is shorter now and newly created basic income support for needy persons is not earnings-related anymore. Pressure on unemployed to take up jobs has increased considerably while more persons than before have access to employment assistance. The paper also aims at a preliminary assessment of the effects of activating labour market policy on labour market as well as social outcomes and sets out probable paths of future adaptation." (author's abstract