Labour market integration of unemployed youth from a life course perspective: the case of Norway

The aim of this article is to analyse the labour market integration of previously unemployed youth in a life course perspective. 'Work, Lifestyle and Health' is a longitudinal panel survey following a sample of nearly 2,000 individuals who are representative of the Norwegian cohorts born between 1965 and 1968. The survey was first conducted in 1985 with follow-ups in 1987, 1989, 1993 and again in 2003. Unemployment among young people does not necessarily lead to marginalisation and social exclusion. Long-term effects will be dependent upon how the youths cope with unemployment, the duration of the unemployment period, their mental health status and educational qualifications. Many young unemployed people are not entitled to unemployment benefits because they lack work experience. Consequently, they are dependent on support from their family and/or social assistance. However, there is still much to learn about the long-term consequences of youth unemployment, e.g. whether or not the youths have received social assistance and what are the long-term consequences for their future labour market career and labour market integration.     

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.     

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.     

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.     

Financial hardship during unemployment in Norway: the impact of public and private income support

It is common to assume that long-term unemployment no longer causes financial hardship because of generous welfare benefits. It is further assumed that unemployment benefits have eroded the traditional role of the family in protecting its members against hazards. This panel study of long-term unemployed people in 1991-1992 demonstrates the inadequacy of unemployment benefits and the importance of family support in reducing the risk of financial hardship. Vulnerable household types, such as single people and families with limited economic resources, at the outset seem unable to bear the personal risk of unemployment that is built into the benefit scheme. Persons disadvantaged at the outset risk a downward spiral because of long-term unemployment. Especially during times of high unemployment, the compensation level is not optimal from a welfare point of view. Greater coverage and more generous unemployment benefits may help unemployed people to cope better financially and thus avoid applying for discretionary and highly stigmatized social assistance allowance.     

Moving targets: Target groups of active labour market policies and transitions to employment in Europe

This study drew on recurrent debates related to labour market mobility among the unemployed and those outside the labour force and asked to what extent active labour market policies (ALMP) increase employment in these two groups. By utilising new programme‐level data on ALMP, the study analysed the impact of core programmes directed towards registered unemployed; peripheral programmes that target the inactive part of the working age population; and mixed programmes targeting both groups. The programme data were combined with individual‐level panel data from the European Survey on Income and Living Conditions and analysed using multilevel analysis. The main results show that both resources devoted to programmes and their size were related to employment transitions. Transitions among the unemployed were mainly associated with spending on core programmes, whereas the inactive seemed to benefit from increased spending on all types of programmes, as well as increased scope of mixed programmes.     

How unemployment duration affects social assistance receipt: evidence from Finland

This article reports on a study of the impact of unemployment duration on the probability of becoming a social assistance recipient and on the time spent on social assistance. The data are taken from a local Finnish labour market consisting of the cohort of unemployed people at a given date (n = 2,274). The data are linked to information about the number of months recipients received social assistance during the subsequent year. Count data regression models of the hurdle type are estimated. The results of the analysis suggest that the impact of unemployment duration on the probability of becoming a social assistance recipient is explained to a large extent by changes in the distribution of types of unemployment benefits between people with different lengths of time spent in unemployment. Unemployment assistance recipients are more likely to become social assistance recipients and to spend longer periods on social assistance than are recipients of unemployment insurance because the unemployment benefits for the latter are higher. Among social assistance recipients, time spent on the transfer increases with unemployment duration only for those who are in frequent need of assistance.     

Attitudes towards the unemployed. An analysis of Swedish survey data

To be unemployed is often associated with being stigmatised by others. People may blame the unemployed themselves, insist that they could find a job if they tried harder, maintain that too little is demanded from recipients of unemployment benefits and consider differences in standard of living between the unemployed and the employed too small. This article is aimed at studying the prevalence of such negative attitudes and to examine the determinants behind them. In May 2000, questions were added on to a randomly selected subsample in the regular Swedish labour force survey. The results indicate that own unemployment experience and perceived risks of becoming unemployed make people less apt to blame the unemployed. Having family members or close friends with unemployment experience tends to have a similar impact. In contrast, young people more often express stigmatising attitudes. With respect to social class position the results are divided.     

Unemployment in Poland - causes and remedial measures

This article describes unemployment and labor market policy in Poland after 1989. The analysis is based on official statistics, legislation and Polish social science literature. The unemployment situation in Poland is continually changing. Conclusions drawn by social scientists in 1991 and 1992 no longer give an adequate account of labor market trends in 1995. Steeply rising unemployment is the most traumatic upheaval in post-Communist Polish society. At the end of 1989, the number of people looking for work in Poland was far less than the number of available jobs. But by the end of 1992 there were 62 job-seekers for every job opening, dropping to 56 in September 1994. The social problems associated with unemployment vary from region to region. Women and young people predominate among the unemployed. The Polish government set up a Work Fund in January 1990 to alleviate unemployment. The Work Fund is the first real measure taken to assist the unemployed, but new legislation is needed if it is to become more effective.     

New challenges for the welfare state: The emergence of youth unemployment regimes in Europe?

In this article we discuss the emergence of ‘youth unemployment regimes’ in Europe, that is, a set of coherent measures and policies aimed at providing state responses to the problem of unemployment and, more specifically, youth unemployment. We classify these measures and policies along two main dimensions: unemployment regulations and labour market regulations. Using original data, we show how seven European countries locate on these two dimensions as well as within the conceptual space resulting from the combination of the two dimensions. Our findings show cross‐national variations that do not fit the traditional typologies of comparative welfare studies. At the same time, however, the findings allow for reflecting upon possible patterns of convergence across European countries. In particular, we show some important similarities in terms of flexible labour market regulations. In this regard, the recent years have witnessed a trend towards a flexibilisation of the labour market, regardless of the prevailing welfare regime.     

Unemployment and psychological distress among young adults in the Nordic countries: A review of the literature

This article reviews Nordic research, published from 1995 and onwards, on the relationship between unemployment and mental health among young adults. Cross‐sectional, longitudinal and time‐series studies are included. Cross‐sectional studies show that the unemployed experience more mental health problems than the non‐unemployed. Leaving unemployment is associated with increased well‐being. Economic problems, feelings of shame and poor social support increase the likelihood of psychological distress. The longitudinal studies show that unemployment increases the risk of psychological distress and attempted suicide, after initial mental health status and confounding factors are accounted for. The relationship remains significant when time‐invariant characteristics of the individuals are controlled for. The time‐series studies found no relationship between unemployment and suicide, but levels of psychological distress were found to vary with changes in the labour market. This relationship remained significant after excluding the non‐employed, indicating that unemployment trends have effects beyond those directly associated with unemployment.     

Employers' perspectives on benefit conditionality in the UK and Denmark

This article examines the under-explored demand-side of active labour market policies (ALMPs). Based on interview data from a comparative study of the UK and Denmark, the paper analyses employers' perspectives and experiences of ALMPs. In both countries, employers were favourably disposed towards employing unemployed jobseekers but held negative views on conditionality. First, benefit conditionality led to employers receiving large numbers of unsuitable and unfiltered job applications, with associated negative resource impacts. Second, employers perceived this as a product of ‘box ticking' and compliance targets. Finally, employers criticised policy and media rhetoric for focusing solely on the supply-side and for problematizing unemployed candidates. The paper argues that these crucial, but neglected, employer perspectives demonstrate that the current benefit conditionality regime in the UK risks irrevocably ‘tarnishing' candidates, which undermines, rather than enhances, their chances of securing employment through ALMPs. This unique dataset provides further evidence that the current direction of policy requires urgent and radical re-thinking.     

Laziness or liberation? Labor market policies and workers' attitudes toward employment flexibility

This study examined the relationship between labor market policies and employees' willingness to make concessions in order to avoid unemployment. In contrast to previous work that analyzed the behavior of employers and the unemployed, we examined how labor market policies influence employees' flexibility. Multilevel modeling techniques were applied to a data set that was created by combining individual‐level data from the International Social Survey Program (ISSP) with country‐level information from the Organization for Cooperation and Economic Development. The main findings of our analyses were that dismissal protection and unemployment benefits do make a difference to employees' willingness to make concessions, and that the relationships between the willingness to make concessions and labor market policies are nonlinear. Substantively, these nonlinear relationships suggest that employees' willingness to be flexible is negatively associated with both “too much” and “too little” social protection.     

What works best when? The role of active labour market policy programmes in different business cycles

Nordlund M. What works best when? The role of active labour market policy programmes in different business cycles Int J Soc Welfare 2011: 20: 43–54 © 2009 The Author, Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. At what point in a business cycle do long‐term unemployed persons gain most from participation in active labour market policy programmes (ALMP) as compared with openly unemployed persons? This article studies this question from the perspective of individual human capital with the hazard of labour market exit and chances of future labour market stability and equal post‐unemployment income as output variables. All the long‐term unemployed in Sweden were followed on a four‐year basis, with 1993 (recession) and 1999 (boom) as starting years. The study shows mainly positive effects among participants regardless of the state of the market. However, ALMP training has a ‘bridging’ effect over different labour market conditions, and a quick return to the regular labour market is, therefore, not as important for the success of participation as it is among ALMP employment participants.     

Association Between Unemployment Duration and Depression in the SouthWest Region of Turkey: A Cross-Sectional Study

ABSTRACT

Unemployment has risen as an effect of globalization in the country of Turkey. To date, no studies have examined the association between the duration of unemployment and perceived mental health. Therefore, the aim of this study is to evaluate the association between the duration of unemployment and the incidenence of depression among citizens in the southwest region of Turkey. A questionnaire was developed and distributed to 908 unemployed individuals. The questionnaire gathered sociodemographic characteristics and employment-related circumstances. To measure mental health, a depression inventory was administered and group-wise t-tests and logistic regressions were conducted. The findings show that long-term unemployed persons had more episodes of depressive moods in the past 12 months when compared with the group of the short-term unemployed. In addition, depression levels were higher among the long-term unemployed compared with the short-term unemployed. It was estimated that the duration of unemployment and the measurement of depression had a positive correlation. Risk factors that increased depression in the short-term unemployed were gender (female), older age, and greater periods of unemployment. However, higher education, income, and having social insurance significantly decreased the risk of developing depression for both the short-term and the long-term unemployed. Future recommendations include supportive counseling to increase motivation levels and developing strategies to handle periods of unemployment.     

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 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.     

Patterns of change in youth unemployment regimes: France and Switzerland compared

The comparison between France and Switzerland enables us to compare a country that has a strong interventionist tradition in the labour market and whose youth unemployment is endemically high with a more liberal country that is faced with a more recent increase in youth unemployment but which, nevertheless, remains relatively measured. Starting from different rules and values, the two youth unemployment systems resemble each other insofar as both exclude most unemployed youth from all available benefits. From this angle, French egalitarianism rejoins Swiss differentialism. In both cases, it is not the least of paradoxes that the system of unemployment insurance so little benefits those who are most vulnerable to the economic crisis and the present dearth of jobs.     

The welfare state as a context for children's development: a study of the effects of unemployment and unemployment protection on reading literacy scores

Data were analysed from the Organization for Economic Cooperation and Development (OECD) Program for International Student Assessment (PISA) to examine whether the relationship between parental unemployment status and child reading literacy is modified by the level of unemployment protection provided by the nation. The sample consisted of 61,946 children, nested in 3,918 schools among 17 market economies. The results of multi-level analyses indicated that, after controlling for a range of individual, family and school covariates, children with unemployed fathers in all countries had significantly lower reading literacy scores than those of employed fathers (β = −8.84, SE = 2.01). The contextual effect of unemployment protection was not significant after accounting for fathers' employment status (β = −18.63, SE = 16.26). However, there was a significant negative interaction between unemployment protection and fathers' unemployment, yielding the unexpected suggestion that, in countries with higher levels of unemployment protection, children with unemployed fathers fare worse, both in relation to children with unemployed fathers in lower protection countries, and in comparison with children with employed fathers (β = −26.96, SE = 8.08). Possible explanations are advanced for this result, including the potential for a 'discouraged child effect' arising from the potential association between unemployment protection and higher local unemployment rates (though unemployment rates at the national level were not significant).     

Youth, unemployment and political marginalisation

The article investigates the impact of being unemployed on political marginalisation among young people. Are unemployed youth politically marginalised compared with employed youth? Is the impact of unemployment on political marginalisation related to the development of the welfare state? Based on Marshall’s concept of social citizenry, and Esping‐Andersen’s theory of decommodification politics, the impact of unemployment on political marginalisation was expected to be least in the most‐developed welfare states. In these countries, welfare policies were expected to counteract marginalisation among the unemployed. The analyses were based on the Eurobarometer survey Young Europeans from 1990. Three aspects of political marginalisation were investigated: political confidence, political interest and political extremism. Unemployed youth express less confidence in politics, they talk less about politics and they more frequently support revolutionary political ideas, compared with employed youth. The greatest difference in political confidence between unemployed and employed is found in Great Britain, while Italy represents a deviant case where the unemployed have more confidence than the employed. The development of the welfare state does not appear to be a crucial factor for political confidence among the unemployed.