Flexicurity in the European Union: flexibility for outsiders, security for insiders

Flexicurity is at the heart of European policy debates. Its aim is to overcome the tensions between labour market flexibility on the one hand, and the provision of social security for workers on the other hand. To date, there is little insight into whether flexicurity policies have been adopted across the European Union. Therefore, the aim of this paper is to analyse to what extent labour market policies have been reformed along the lines of the flexicurity concept across 18 European countries over the period 1985-2008. Focusing on the main axes of the flexicurity concept, new datasets are used to examine changes in employment protection legislation, unemployment benefits and active labour market policies. Data on the strictness of employment regulation indicate that reforms have been influenced by labour market insiders, since the level of flexibility has been increased more for temporary employment, the labour market outsiders, than for regular employment, the insiders. Although gross unemployment replacement rates suggest that unemployment benefits have become more generous, net replacement rates indicate that the level of income security from benefits actually has been decreased. Moreover, data illustrate that larger shares of European labour forces have temporary contracts. As such, the gap between insiders and outsiders on the labour market has been increased. This development is contrary to the goals of the European Commission.Flexicurity, insider-outsider theory, labour market policy, welfare state, political economy

Globalisation, European Integration and Social Protection – Patterns of Change or Continuity?

The adoption of a new instrument of governance in the EU – the open-method-of-coordination - has renewed the notion of convergence/divergence across EU member states. This paper examines the role of European integration in shaping and changing social welfare systems and investigates whether these patterns of change or continuity follow welfare state regime typologies. Embedded in the Europeanisation, convergence and welfare state regime literature, we rely on recent 2007 OECD social expenditure data. Controlled for cyclical and demographic effects this study shows that since 1991 social expenditures of EU member states have converged and increased on average, whereas non - EU member states have diverged. To examine whether these trends can be explained by changes in welfare regimes dendograms offer a useful means. Although we find a link between the type of regime and the long-term type trajectory more generally, these regime patterns appear to be in flow. This study finds in particular some empirical evidence for the loss in momentum of the Scandinavian regime pattern.social expenditures, convergence, Europeanisation, welfare state regimes, cluster analysis

Patterns of welfare state indicators in the EU: Is there convergence?

Convergence of social protection objectives and policies in member states is an explicit objective of the EU. Earlier research has shown that there has indeed been a tendency of convergence of social protection levels over the last decades. However, comparative studies of welfare states frequently use indicators which may not be representative as measures of the level or generosity of benefits in different countries. In this paper we have done several σ- and β-convergence tests with the most recent data, using a variety of indicators of social protection: social expenditures, both at the macro and at the program level, replacement rates of unemployment benefits and social assistance benefits and poverty indicators. Together, these indicators provide a more broad picture of the evolution of social protection. Our results are less clear cut than earlier findings. We still find a quite strong convergence of social expenditure in EU-countries over a longer period. However, this trend seems to have stagnated in recent years. The evidence is mixed for the other indicators. Replacement rates of unemployment benefits clearly converged to a higher level, but social assistance benefits and poverty rates do not show a trend of convergence.welfare states, convergence, Europeanization, social indicators

Pension reform and income inequality among the elderly in 15 European countries

The ageing of populations and hampering economic growth increase pressure on public fi-nances in many advanced capitalist societies. Consequently, governments have adopted pen-sion reforms in order to relieve pressure on public finances. These reforms have contributed to a relative shift from public to private pension schemes. Since private social security plans are generally less redistributive than public social security, it can be hypothesized that the privatization of pension plans has led to higher levels of income inequality among the elderly. Existing empirical literature has mainly focused on cross-country comparisons at one moment in time or on time-series for a single country. This study contributes to the income inequality and pension literature by empirically analysing the distributional effects of shifts from public to private pension provision in 15 European countries for the period 1995-2007, using pooled time series cross-section regression analyses. Remarkably, we do not find empirical evidence that shifts from public to private pension provision lead to higher levels of income inequality or poverty among elderly people. The results appear to be robust for a wide range of econometric specifications.income inequality; pension reform; public/private-mix; retirement; welfare state

Flexicurity in the European Union: flexibility for outsiders, security for insiders

Flexicurity is at the heart of European policy debates. Its aim is to overcome the tensions between labour market flexibility on the one hand, and the provision of social security for workers on the other hand. To date, there is little insight into whether flexicurity policies have been adopted across the European Union. Therefore, the aim of this paper is to analyse to what extent labour market policies have been reformed along the lines of the flexicurity concept across 18 European countries over the period 1985-2008. Focusing on the main axes of the flexicurity concept, new datasets are used to examine changes in employment protection legislation, unemployment benefits and active labour market policies. Data on the strictness of employment regulation indicate that reforms have been influenced by labour market insiders, since the level of flexibility has been increased more for temporary employment, the labour market outsiders, than for regular employment, the insiders. Although gross unemployment replacement rates suggest that unemployment benefits have become more generous, net replacement rates indicate that the level of income security from benefits actually has been decreased. Moreover, data illustrate that larger shares of European labour forces have temporary contracts. As such, the gap between insiders and outsiders on the labour market has been increased. This development is contrary to the goals of the European Commission

Social assistance and minimum income benefits: Benefit levels, replacement rates and policies across 33 countries, 1990-2009

Until recently, social assistance has received relatively little attention in the comparative welfare state literature, which is remarkable given its central function in combating poverty and pursuing social inclusion. This paper explores the developments of social assistance and minimum income benefits across 14 Western European countries, 12 Central and Eastern European countries and 7 non-European countries over the period 1990-2009. First, an institutional analysis shows that eligibility conditions, work requirements and benefit sanctions vary considerably across countries. Second, relying on new indicators, our analysis shows that real benefit levels increased in most countries, whilst the net income replacement rates declined on average. This development seems to fit with a ‘making work pay’ agenda. A subsequent qualitative analysis of the policies underlying the quantitative measures indicates that the declining replacement rates do not result from benefit cuts but from relatively larger wage increases. In addition, our policy analysis indicates that work requirements and benefit sanctions have become more activating in many countries. Third, the data indicate that social assistance benefits diverged across EU and other OECD countries between 1990 and 2009. Finally, this paper seeks to make a methodological contribution to the ongoing debate on the ‘dependent variable problem’ in the welfare state literature by analysing to what extent changes in quantitative indicators reflect actual policy changes

Globalisation, European Integration and Social Protection – Patterns of Change or Continuity?

The adoption of a new instrument of governance in the EU – the open-method-of-coordination - has renewed the notion of convergence/divergence across EU member states. This paper examines the role of European integration in shaping and changing social welfare systems and investigates whether these patterns of change or continuity follow welfare state regime typologies. Embedded in the Europeanisation, convergence and welfare state regime literature, we rely on recent 2007 OECD social expenditure data. Controlled for cyclical and demographic effects this study shows that since 1991 social expenditures of EU member states have converged and increased on average, whereas non - EU member states have diverged. To examine whether these trends can be explained by changes in welfare regimes dendograms offer a useful means. Although we find a link between the type of regime and the long-term type trajectory more generally, these regime patterns appear to be in flow. This study finds in particular some empirical evidence for the loss in momentum of the Scandinavian regime pattern

Social Investment, Employment Outcomes and Policy and Institutional Complementarities: A Comparative Analysis across 26 OECD countries

Social investment has become a widely debated topic in the comparative welfare state literature. To date, there are, however, only a couple of systematic comparative empirical analyses that focus on the employment outcomes associated with social investment. This study contributes to the social investment literature by empirically analysing the extent to which variation in employment outcomes across 26 OECD countries over the period 1990-2010 can be explained by effort on five social investment policies using time-series cross-sectional analyses. Apart from focusing on employment rates, we additionally explore associations with qualitative aspects of the employment outcomes relying on novel indicators. The analyses account for theoretically relevant confounding variables that were omitted in existing studies, notably labour market institutions. We find robust evidence for a positive association between effort on active labour market policies and employment rates. For other policies we obtain mixed results, dependent on the employment outcome being studied. Subsequently, we explore the role of policy and institutional complementarities in the assessment of the employment effects of social investment policies. We show how social investment policies interact and how their effect is moderated by effort on other policies. Additionally, our analysis shows that the complementarity of social investment policies varies across welfare state regimes. Finally, explorative analyses suggest that there are positive synergies between more and better jobs, which could in part be attributable to effort on social investment

Social Investment, Employment Outcomes and Policy and Institutional Complementarities: A Comparative Analysis across 26 OECD countries

Social investment has become a widely debated topic in the comparative welfare state literature. To date, there are, however, only a couple of systematic comparative empirical analyses that focus on the employment outcomes associated with social investment. This study contributes to the social investment literature by empirically analysing the extent to which variation in employment outcomes across 26 OECD countries over the period 1990-2010 can be explained by effort on five social investment policies using time-series cross-sectional analyses. Apart from focusing on employment rates, we additionally explore associations with qualitative aspects of the employment outcomes relying on novel indicators. The analyses account for theoretically relevant confounding variables that were omitted in existing studies, notably labour market institutions. We find robust evidence for a positive association between effort on active labour market policies and employment rates. For other policies we obtain mixed results, dependent on the employment outcome being studied. Subsequently, we explore the role of policy and institutional complementarities in the assessment of the employment effects of social investment policies. We show how social investment policies interact and how their effect is moderated by effort on other policies. Additionally, our analysis shows that the complementarity of social investment policies varies across welfare state regimes. Finally, explorative analyses suggest that there are positive synergies between more and better jobs, which could in part be attributable to effort on social investment

Globalisation, European Integration and Social Protection – Patterns of Change or Continuity?

The adoption of a new instrument of governance in the EU – the open-method-of-coordination - has renewed the notion of convergence/divergence across EU member states. This paper examines the role of European integration in shaping and changing social welfare systems and investigates whether these patterns of change or continuity follow welfare state regime typologies. Embedded in the Europeanisation, convergence and welfare state regime literature, we rely on recent 2007 OECD social expenditure data. Controlled for cyclical and demographic effects this study shows that since 1991 social expenditures of EU member states have converged and increased on average, whereas non - EU member states have diverged. To examine whether these trends can be explained by changes in welfare regimes dendograms offer a useful means. Although we find a link between the type of regime and the long-term type trajectory more generally, these regime patterns appear to be in flow. This study finds in particular some empirical evidence for the loss in momentum of the Scandinavian regime pattern