Institutions and structures as barriers? A comparison of native‐born and immigrant unemployment durations across 12 European countries

This study investigated the effect of institutions on the unemployment duration gap between non‐EU immigrants and native‐born in 12 European countries. Going further than the existing literature, our study encompassed unemployment duration, distinguishing between exits to inactivity, primary and secondary employment. Additionally, we have provided a stronger micro‐foundation to the comparative literature by introducing institutional measures for unemployment‐related benefits at the individual level rather than merely using aggregate proxies. Our analysis found no disincentive effects of benefits for immigrants. Furthermore, the employment prospects of immigrants were better when the demand for low‐skilled labour was high, and immigration policy was labour market‐oriented. In contrast, employment protection legislation did not affect the unemployment duration of immigrants.     

Contextualising institutional complementarity. How long‐term unemployment depends on employment protection legislation,active labour market policies and the economic climate

This study investigated if and how active labour market policies (ALMPs) and employment protection interact with each other in light of long‐term unemployment reduction. We argue that how well the interaction between both labour market institutions reduces long‐term unemployment depends on the level of economic growth. To improve analytical clarity, two types of ALMPs were differentiated, namely training and employment programmes. Using data on 20 European countries over 16 years, our results suggest that employment protection moderates the relationship between employment programmes and long‐term unemployment. The combination of high spending on employment programmes and less strict employment protection is associated with less long‐term unemployment. This moderation effect is stronger during an economic downturn. A moderation effect from employment protection on the relationship between training programmes and long‐term unemployment was not found, even when the economic climate was taken into account as a contextual factor.     

Unemployment Insurance in Algeria: Help or Hindrance?

The issue of employment has become a crucial one in Algeria. Not only does the economy no longer offer opportunities for jobseekers; economic reforms have led to countless public-sector businesses being wound up, putting thousands of people out of work. Against this background, a system of temporary unemployment benefits has been introduced, though its effectiveness has been sharply criticized. How many of the occupations targeted by the legislation setting up the system are actually covered by Algeria's unemployment insurance system, and on what terms? What obstacles are there to the full realization of this system's objectives, and how effective is it in an economic and financial sense? The unemployment insurance system is traditionally accused of clogging up the machinery of employment and preventing a return to a competitive labour market. There are also those who believe that this system helps to foster voluntary unemployment and encourages people to spend more time on leisure pursuits. Our article considers all these views. At the end the reader will also find brief details of unemployment insurance in South Africa and Egypt.     

Reducing unemployment? Examining the interplay between active labour market policies

Active labour market policies (ALMP) are important tools that welfare states utilize to influence the labour market. This study analyses the macroeconomic effects of different types of ALMP spending on aggregate unemployment rates, and especially if there is evidence of interdependencies between policies. The types of policies scrutinized are public employment services (PES), training programs, public job creation and subsidized employment, where the PES is singled out as a crucial factor that moderates the effects of other types of labour market programs. The study examines 19 welfare states between 1985 and 2013, using error correction modelling to separate between short‐ and long‐term effects. The results indicate that PES, training and subsidized employment reduce unemployment in the short‐run, whereas PES and wage subsidies are associated with reduced unemployment when considering long‐term effects. However, PES is found to have indirect effects on other policy types and increased spending on PES is shown to reinforce long‐term effects of training programs.     

Unemployment and economic security for young adults in Finland,Norway and Sweden: From unemployment protection to poverty relief

In this study, we investigated if there has been a displacement in the type and coverage of welfare services available for young unemployed adults in Finland, Norway and Sweden over the last two decades. This question is important because a number of studies have argued that the generous unemployment benefits and extensive labour market intervention found in the Nordic welfare states shield young people from the most severe consequences of economic inactivity. In this article, we instead show that during this period, less generous means‐tested unemployment and social assistance benefits have become the most important form of income protection for young people. In evidence, earnings‐related unemployment benefits now cover only 10 per cent of unemployed Swedes and Finns and 45 per cent of unemployed Norwegians aged 24 years or younger. This development marks a significant change in our understanding of unemployment protection for young people in Nordic countries.     

Including informal economy workers in contributory social protection: Current challenges in Latin America

Owing to a favourable economic situation and to national labour market and social protection policy reforms, Latin America has witnessed significant progress in social protection coverage. Some countries, however, have seen weaker progress, with stagnant coverage levels. Several factors underlie the extension of pensions and health care coverage and the formalization of the labour market: substantial improvements in the quality of employment, more flexible eligibility criteria for contributory coverage, and the strengthening of the supervisory and regulatory roles of the State. This article first addresses the link between social protection and informality in Latin America to show the relationship between informal labour markets, the lack of social protection and the scale of unpaid contributions. Also highlighted is regional progress in extending social protection as a result of labour market formalization. Countries in the region have used various policies to encourage formalization and these have also helped to reduce wage inequalities, since formalization has had especially beneficial effects on low‐income sectors. Finally, we discuss dichotomous views on social protection financing in the region that tend to place contributory and non‐contributory financing in opposition to one another but do so in favour of the latter, tend to support proposals for limited coverage, and which do not challenge the stratification of access to social protection. The move towards a convergence of benefits is deemed essential: strategies to universalize social protection in the region should not focus exclusively on increasing resources, but must address institutional change as a crucial part of the locus of innovation.     

The disembedded digital economy: Social protection for new economy employment in China

This research focuses upon employment in the new economy, exploring labour protection and social protection in the digital age in China. Through an empirical survey conducted in three Chinese cities, social insurance and the labour rights of employees in the digital economic sector, such as gig employment, e-commerce, and various other forms of online employment, have been examined in-depth. This study reveals new regulatory loopholes in the digital labour market, which have substantially eroded the basis of social policy arrangements in China, “softening” participation in social insurance branches and compliance with labour regulations remarkably. Drawing upon the theoretical concepts of Polanyi on embeddedness and disembeddedness, we argue that the digital employment sector in China has been increasingly disembedded from social institutions and social control. The new configuration in the digital field of social policy requires novel conceptual models and institutional settings to cope with increasing social risks in virtual spaces.     

Social Policy in Greece: Rhetoric versus Reform

This paper reviews the major social policy developments in Greece during the 1980s and 1990s, focusing on social security, health and employment policies. It argues that the concept of social policy and the practice of politics have been distorted in this country. Social policy reflects the legacy of a heavily politicized and centralized policy‐making system, an impoverished administrative infrastructure and poorly developed social services. Its emergence is characterized by the pursuit of late and ineffective policies. It lacks continuity, planning and coordination, being oriented towards short‐term political expediency. It is largely insurance‐based, reproducing huge inequalities and institutional arrangements which are behind the times. It provides mainly cash benefits, low‐quality but rather expensive health services and marginal social welfare protection. Moreover, the lack of a minimum income safety net confirms the country's weak culture of universalism and social citizenship. By implication, complex policy and interlocking interest linkages have tarnished the “system” with a reputation for strong resistance to progressive change. At the same time, sources of change such as globalization, demographic developments, new household and family/gender patterns, unstable economic growth, fiscal imperatives, programme maturation, as well as persisting unemployment, changing labour markets and rising health care costs, have produced mounting pressures for welfare reform.     

Coping with long–term unemployment: economic security, labour market integration and well–being. Results from a Danish panel study, 1994–1999

On the basis of a Danish panel study of the long–term unemployed 1994–1999, the article challenges core premises underlying labour market reforms, assigning too high a priority to work and work incentives, and too little priority to social protection. Economic hardship has become widespread among long–term unemployed even in Denmark, and this is a more serious threat against well–being than unemployment as such. Generous social security, denounced as 'passive support', enables the unemployed to cope with their situation, and there are no signs of any 'dependency culture'. Incentives in terms of economic hardship may stimulate active job seeking but the panel study reveals that it has no positive effect on subsequent labour market integration.     

Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age

Pfeifer, M. Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age This article aims to show which policy responses 14 Western European countries have adopted to deal with rising unemployment levels and increased need for benefits during working age. In contrast to earlier studies, both components of unemployment benefits (UB), i.e. unemployment insurance and unemployment assistance, were taken into account in a social rights indicator that depicts the legal entitlements of the unemployed. In total, there were eight indicators of both UB and social assistance representing expenditure, generosity, problem pressure and benefit entitlements. The following cluster analysis groups countries using these indicators. The resulting typology consisted of four ways of protecting the working‐aged: an extensive safety nets type operating well with functioning labour markets; a liberal protection type dealing with low levels of unemployment; a targeted protection type combined with an insider–outsider divide on the labour market; and lastly, a patchy safety nets type facing high unemployment levels.     

Economic Policy and Social Policy: Policy-linkages in an Era of Globalisation

This article argues that changes in the role of the state in economic affairs will affect the process of social policy. Growing economic integration caused by globalisation now places a greater constraint upon the discretion of the nation state, bringing about a transformation into a more competitive state. States are increasingly having to compete against each other in order to promote competitiveness and attract foreign direct investment (FDI) from international capital markets. This competition influences in turn the social policy formation requiring the redesigning of social policy. Thus, welfare states may need to reform their social policy towards a "business-friendly social policy". The analysis of social policy inputs and outputs presented here suggests that there are common trends in most welfare states towards: a market-conforming policy on business taxation, a reduction of the share of employer's contributions in social protection revenues, more limited income security programmes, an increased allocation of resources for active labour market programmes and less state intervention in the labour market. All these reforming trends in social policy can be understood as a response of welfare states to the evolving needs of business caused by structural change, notably globalisation.     

How fair are unemployment benefits? The experience of East Asia

Despite an increasing emphasis on active labour market measures, unemployment benefits still remain a focal point of employment protection. This article takes the cases of four East Asian economies – China, Japan, Republic of Korea, Taiwan (China) –, which are often characterized as having welfare states with a strong developmental and productivist orientation, to investigate whether, as is sometimes argued, unemployment benefits are restrictive and exclusionary. In doing so, it examines the logic behind the design of unemployment benefits and argues that they are in fact progressive in design and fair when they pay out. Nonetheless, low effective coverage and low benefit rates weaken their redistribution and compensation objectives.     

Constructing Unemployment: Britain and France in Historical Perspective

Unemployment emerged as a specific social issue in the late‐19th century, but the nature of the threat it posed and the governing instruments available to address it varied widely. Using Britain and France as strongly contrasting cases, this article demonstrates the variable and historically contingent constructions of unemployment as a problem, and demonstrates how policy to address it was developed using administrative agencies that embodied specific, normative visions of how society and employment should operate. The different governing trajectories through which the issue was tackled is analyzed in terms of the context within which the problem of unemployment originally emerged. The article demonstrates the socio‐political nature of unemployment's construction and, with reference to recent labour market change, questions its utility as a means of assessing economic or social well‐being.     

Unravelling the Politics of Activation Reforms: Exploring the Unusual Israeli Trajectory

Contemporary active labour market (ALM) reforms are pivotal in the reorganization of the welfare state as they challenge and threaten some of the fundamental achievements of labour in capitalist societies: social programmes and entitlements that compensate for unemployment, and governance arrangements in which the social partners share authority and responsibility with the state. Consequently, ALM reforms may give raise to social unrest and political struggle that involves the state (the main proponent of ALM reforms), trade unions and political parties. These conflicts are important in the politicization of reforms, i.e. raising public awareness of and engagement with controversies of welfare state change. In this article, we use a non‐European perspective to ask more generally how distinct historical institutions create separate ‘politicization trajectories’ of ALM reforms, which in turn produce different policy designs and outcomes. Centring on the case of Israel, in which historically ‘abnormal’ class politics fostered indifference to the reform in both trade unions and political parties, we maintain that the preliminary de‐politicization made it possible for bureaucrats to control the reform, leading to an intra‐state conflict between competing agencies over its design and implementation. The usurpation of the reform by the Ministry of Finance made it conspicuously unbalanced, provoking many grievances. Paradoxically, the de‐politicization of the reform advanced its re‐politicization, led by non‐governmental advocacy organizations in civil society. These uncommon political actors in the politics of ALM reforms were able to lead a counter‐coalition, delegitimize the reform, and mobilize politicians to eventually terminate activation     

Activation and social inclusion: challenges and possibilities

The last two decades have seen an increasing focus on the activation of individuals receiving welfare benefits. This has entailed an attempt to transform employment assistance and social security systems to make them more employment‐friendly through the development of explicit linkages between social protection policies, labour market participation and labour market programs. At the same time there has been a growing interest in the concept of social inclusion, and social inclusion has been a commonly stated goal of activation programs. However, despite some synergies between these two approaches, in other respects it is not clear that they are always compatible. This paper explores the extent to which activation programs are central to the social inclusion approach and the similarities and differences between these approaches. It then briefly examines the evidence regarding the ability of activation programs to enhance social inclusion.     

Financial Incentives and Job‐search Training: Methods to Increase Labour Market Integration in Contemporary Welfare States?

In their efforts to increase labour market integration, contemporary welfare states emphasize the importance of financial incentives, active job‐searching and participation in labour market programmes. However, the effects of these policies have been minor and in some cases even inconsistent. The aim of this study was to examine whether and how financial incentives and job‐search training programmes increase re‐employment and the quality of re‐employment. A total of 1,015 unemployed persons participated in a Finnish follow‐up study with a randomized experimental design. Although no overall impact of job‐search training on re‐employment emerged, a positive effect was found for those groups of the unemployed who had a financial incentive to participate in the programme. Nevertheless, among unemployed workers with benefits at a minimum level there were no positive effects on the quality of re‐employment, and the impact decreased when unemployment was prolonged. Financial incentives and job‐search training appear to increase re‐employment among those of the unemployed who generally have better chances on the labour market, whereas these measures are not sufficient for the more disadvantaged groups of the unemployed.     

The protection of atypical work in the Australian, British and German social security systems

It is a common feature of Australian, British and German social security law to exclude atypical work from many normal standards of protection. Social insurance and occupational welfare law still concentrate on the standard employment relationship, as they use length and continuity of employment as the major criteria for distributing benefits, and means-tested systems put those who depend on different sources of income, as most atypical workers do, at a disadvantage. However, equal treatment and even promotion are granted to one type of atypical work: the combination of domestic and atypical labour market work. Examples are the law of unemployment insurance in Great Britain and Germany, the family components within the social insurance schemes, the special British and Australian means-tested benefits for the working poor family, and parental leave legislation in Germany.     

Gender inequalities in European unemployment benefit systems

The most important structural change which has occurred on the labour market over the past 30 years is the sustained and continued growth of female labour supply. Two-earner couples have become a majority in most European countries and lone parents, mostly women, are also on the rise. On the other hand, since 1975, labour market policies have altered the quality and nature of employment in Europe by promoting atypical forms of employment where women are overrepresented. The analysis has shown us that atypical employment results in restricted access to unemployment benefits. Moreover, combining the presence of more stringent conditions with derived rights results in more and more women being dependent upon their spouses for financial as well as social protection and can even have a disincentive effect on formal labour market participation.     

Straddling Two Continents: Social Policy and Welfare Politics in Turkey

There has been an increasing academic interest in understanding the dynamics of social policy in the Middle East and developing a conceptual ‘model’ to account for the particular characteristics of welfare arrangements in the countries of the region. While part of this framework, Turkey represents an exceptional case due to the Europeanization processes the country is undergoing in various policy areas, including social policy. The influence of the European Union on the shape of Turkish social policy, as illustrated by the government's recent reforms in the labour market and social security domains, is hereby used to outline the position of Turkey vis‐à‐vis both the Southern European welfare regime and the Middle Eastern pattern. This article seeks to assess the dynamics of Turkish social policy in light of the country's political, and socio‐economic dynamics, as well as the external influence exerted by the EU and international financial institutions. The aim is to examine Turkish welfare arrangements in a comparative manner and consider its suitability with reference to either of the two models. Looking at major trends in social security and the labour market, the article argues for a Turkish ‘hybrid’ model embodying the characteristics of both. Subject to EU explicit pressures for reform absent elsewhere in the Middle East, the data nevertheless show that Turkey has yet to make the qualitative leap forward that could place it firmly within the Southern European welfare group.     

The Time‐related Underemployment of Lone Parents during Welfare Reform,Recession and Austerity: A Challenge to In‐work Conditionality?

Reforms to UK social security benefits introduced between 2008 and 2012 that increased lone parent obligations to enter employment coincided with economic crisis and government austerity. Increases in underemployment in the broader population during this period both in terms of unemployment and time‐related underemployment raise questions regarding the extent to which lone parents not only managed to enter paid work but obtain a sufficient number of employment hours. Activation policies have increased labour market exposure at a time of greater underemployment. At the same time, high levels of economic hardship, in the context of stagnant real wage growth and benefit cuts linked to broader austerity policy, could place additional pressures on lone parent time‐related underemployment where a desire for greater employment hours to improve household income is not met by availability. We present findings showing disproportionately high growth in time‐related underemployment among lone mothers with, at peak, around one in five employed lone mothers with a youngest dependent child aged over five experiencing such underemployment. The implications to in‐work conditionality policies and the roll out of the UK's new working age benefit Universal Credit are highlighted.