1 Panel session 3: Liberalisation, dualisation or integration? How to interpret changes in labour market and social policies over the last 3 decades RECONCILING WORK AND WELFARE IN EUROPE Recwowe Final conference, Brussels, 17 June 2011

2 Panel session 3: Liberalisation, dualisation or integration? Unemployment Protection Adapting to Post-Industrial Labour Markets? RECONCILING WORK AND WELFARE IN EUROPE

Unemployment Protection Adapting to Post-Industrial Labour Markets? 12 EU countries 1980s – 2010 focus: institutional change findings: diversity....but also: emerging trend of integration (triple integration) 3

Post-industrial changes mass unemployment; long-term unemployment female labour market participation emerging service economies –demand for low-skilled workers –declining real wages / employment conditions in unskilled service sectors –lower productivity growth –demands for flexibility 4

Policy responses (1970s/80s) benefit cut-backs; eligibility rules (core/periphery) – (UI, UA/SA) narrowing ‘open’ unemployment –statistically –early retirement –expanding ‘alternative’ transfer programmes –subsidised employment (2 nd labour markets) 5

6 Policy responses (1990s- ) promotion of flexibility –UI: no longer/less about rewarding stability (previous wage, occupational status) fostering labour market entry (not exit) –growth via employment growth –cost of non-employment benefits –cost of 2 nd labour markets > ……triple integration

Activation linking benefits and employment support/search rights and obligations intensive job search support shorter programmes (less emphasis on qualification) – ‘work first’ improving work incentives ‘one-stop’ shops 7

UB Homogenisation Unemployment insurance (UI) less status confirming UI and UA less distinct from each other  two dimensions –structural (rules; conditions; parameters) –distribution of claimants (caseload) 8

Risk re-categorisation broadening of the status of unemployment –early retirement –work capability tests –single parents >> single working age benefit? Integration between ‘out-of-work’ and ‘in- work’ benefits? 9

10 Triple Integration in Contemporary Labour Market Policy Process of Integration empirical indicators UB Homogenisation - less earnings-relatedness in UI (access; benefits) - fewer tiers of UB - emergence of dominant UB tier Risk Re- Categorisation - diminishing differences (entitlement; conditionality) between UB and other schemes - transferring claimants to UB systems - merging benefit programmes - creating single benefit for working-age people - diminishing boundary between ‘in-work’ and ‘out-of- work’ benefits Activation - tighter job search conditionality - ‘work first’ orientation in ALMP - administrative linking active and passive LMP (e.g. Jobcentre Plus) - joint administrative support for all working-age benefit groups (‘one stop shops’)

11 Some illustrations Process of integrationExemplars Benefit Homogenisation Increasingly ‘coordinated dualism’ in France Stripping earnings-relatedness out of Belgian, Danish, Swedish UI Assistance as dominant tier in UK, Germany and NL Risk Re-categorisation Extension of activation beyond unemployed widespread Increasingly all social support beneficiaries ‘employable’ in NL, D, DK, UK RSA replaces PPE and API in France; former social assistance recipients in UBII in Germany, (UBII also a job subsidy) Towards a single working age benefit in the UK ActivationEverywhere! but also going far (e.g. institutional mergers) in once ‘unpromising’ cases (e.g. France, Germany)

Degree of institutional integration A clearest B modest C least (partly opposite trends) UK Netherlands Germany Denmark {Belgium} France Sweden Italy Switzerland Spain Hungary Czech Republic 12

13 Unemployment Protection Adapting to Post-Industrial Labour Markets? THE END RECONCILING WORK AND WELFARE IN EUROPE