Welfare regime change – or lack of change – in unemployment compensation

Drawing on theoretical accounts of institutional change, this study explored the politics of welfare regime transformation in regard to Turkey's unemployment compensation system. By using the institutionalist approach, the study shows that the process of welfare regime change was one of “institutional layering” of unemployment insurance (UI) over severance pay. Also, the study demonstrates that the economic bureaucracy played a key role in pushing the establishment of UI (state‐centric approach) in contrast to the class‐based organizations that focused their struggles on the severance pay scheme (power‐resource perspective). However, the economic bureaucracy preferred a rudimentary UI design, which prevented UI from undermining the vested interests behind the severance pay scheme. Furthermore, subsequent attempts at the reformation of the severance pay scheme were not successful because the social welfare bureaucracy lacked the capacity to develop a policy alternative to resolve the stalemate between the societal actors. Lastly, the study used the successful severance pay reform experiences of South Korea and Austria to locate the Turkish case within a broader comparative framework.     

Comparing Formal Unemployment Compensation Systems in 15 OECD Countries

This study contributes to the welfare regime literature by analyzing unemployment compensation programmes – unemployment insurance (UI)/assistance (UA) programmes and redundancy pay schemes – of welfare state/occupational welfare regimes. It covers 15 countries of the Organisation for Economic Co‐operation and Development (OECD) selected from Southern European, Liberal, Continental‐corporatist and Social Democratic country clusters. In contrast to the common argument that Southern European countries have underdeveloped formal unemployment compensation systems, this study argues that they (especially in Spain, Portugal, and to some extent Italy) are comparable in strength to those in Continental‐corporatist countries if occupational welfare programmes – notably redundancy pay – are considered alongside welfare state programmes for unemployment protection. The study also outlines the characteristics of redundancy pay schemes in the four country clusters and shows how different redundancy pay schemes are linked to UI/UA schemes in these clusters.     

Lessons from the American federal-state unemployment insurance system for a European unemployment benefits system

This article reviews practices in the United States (US) federal-state unemployment insurance (UI) system regarding applicant eligibility, benefit generosity, benefit financing and emergency measures with the aim of revealing lessons for a possible European unemployment benefit system (EUBS) for European Union (EU) Member States. We overview the US system for UI and examine important areas of federal leadership. While the US system offers some good ideas for setting up an EUBS, there are also lessons in some shortcomings of the US experience. We overview existing national UI systems in the EU and review the debate on an EUBS in the EU. We identify areas of risk for individual and institutional moral hazard in a multi-tiered UI system and give examples of monitoring methods and incentives to ameliorate such risks. We suggest approaches for gradual system development, encouraging lower-tier behaviour, benefit financing, and responses to regional and system-wide labour market crises.     

Job-Seeking Behavior in Young Adults: Do Unemployment Insurance Benefits Hurt Job Search Efforts?

ABSTRACT. The purpose of the present study was to evaluate the association between extended unemployment insurance (UI) benefits and young adults’ job-seeking behavior. In particular, the study evaluated if the extension of UI benefits to 99 weeks in 2008 had direct effects on job search efforts. Three waves (2007–2009) of data (N = 915) from the National Longitudinal Survey of Youth were analyzed using multiple regression models to assess the association of UI benefits to young adults’ job search efforts. Additionally, the homogeneity of slope coefficients of the UI benefit on job search effort was evaluated across 3 years using an analysis of covariance (ANCOVA). The results of regression analyses suggest that UI benefits were negatively associated with job search efforts for 2007 and the pooled sample of 2007 to 2009, but the relationship was not significant for 2008 and 2009. The results of the ANCOVA suggest that the UI benefit extension of 2008 did not have any negative association with job search efforts. Future studies should explore the subjective experiences and decisions young adults make in consideration of unemployment, UI benefits, and job search efforts.     

The emergence of social assistance in China

This article outlines the development of China's social assistance programme, including its design, implementation and trends. The Chinese government has given high priority to the establishment and institutionalisation of this programme. To have an effective social assistance programme in the context of an increasingly pluralistic society, China is facing the profoundly challenging task of designing a coherent and over-arching social protection system that would cover retirement, medical care, unemployment and poverty alleviation.     

The Workfare Illusion: Re-examining the Concept and the British Case

This article contends that workfare programmes pursued by various OECD countries since the mid‐1990s do not amount to a fundamental change in policy. The limited potential of workfare is due to the fact that it fails to transcend the constraints of earlier forms of ‘active’ responses to unemployment. Furthermore, it suffers from specific policy‐making disadvantages not shared by these responses. The article opens with a survey of relevant academic debates on the subject. It then places workfare in a broader context by identifying its functional reach, as compared to other active policy responses to unemployment such as active labour market policy (ALMP). The third section analyses workfare policies in the United Kingdom, as developed since 1997, by re‐examining the British New Deal employment programme. That review demonstrates that workfare policies either depend on their ‘fit’ with the existing policy‐making heritage, or that they remain merely symbolic. The article concludes by suggesting that the potential of workfare to effect change in responses to unemployment continues to be of limited significance. In other words, capitalist employment and welfare systems continue to be characterized by incremental adaptation rather than by fundamental regime change as suggested by the critics of workfare.     

Regional labor market adjustment to structural shocks: An international comparison

Previous research indicates that local industry composition significantly influences unemployment in the American Rust Belt. This paper uses a dual market model to compare evolutions of structural joblessness in German regions with those of a Rust Belt area in the United States. Results indicate that German labor markets exhibit both intriguing similarities and differences to the US benchmark case. In particular, the contrasts between the two areas highlight the less distinct labor supply flexibility of Western European labor markets as demonstrated by unemployment responses to changes in regional employment prospects.     

Deciphering Deservedness: Canadian Employment Insurance Reforms in Historical Perspective

In 2012, the Government of Canada introduced reforms to Employment Insurance (EI), Canada's primary income security programme for the unemployed. The changes entailed new requirements for particular types of claimants to apply for and accept jobs of increasingly less pay, and codified the efforts claimants must demonstrate in job searches to maintain benefits. These measures leave many claimants little choice but to accept precarious employment as a means of financial survival. The central claim of the article is that recent EI reforms are not adequately understood as an instance of neo‐liberal activation. Instead, they must be situated in a long history of attempts to categorize the unemployed as deserving or undeserving of income security on the basis of their work history and perceptions of their willingness to work. Through a survey of different periods of unemployment policy in Canada, we demonstrate continuity in authorities' efforts to differentiate the unemployed into categories of worthy and unworthy. Within this history, however, the 2012 reforms are unprecedented in the extent to which they reorient the EI programme to service low wage labour markets. By way of conclusion, we suggest that the current EI programme exacerbates insecurities for the growing segment of workers in precarious employment.     

Once a NEET always a NEET? Experiences of employment and unemployment among youth in a job training programme in Taiwan

Chen Y‐W. Once a NEET always a NEET? Experiences of employment and unemployment among youth in a job training programme in Taiwan Int J Soc Welfare 2011: 20: 33–42 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. Ten previous participants in a job training programme, ages between 15 and 20, were interviewed face‐to‐face to determine why they were not employed, in education or in vocational training (represented by the acronym NEET) at the time, as well as their related experiences. They were also asked about their experiences and opinions regarding the training programme and their ideas about work in general. Results of the study indicate that most of the respondents did not become NEETs by choice; they did so for economic reasons. Most thought the programme was of little practical help to them and did not increase their chances of employment, but that it did give them social and emotional support and helped them feel better about themselves. Many agreed that the monetary allowance offered by the programme was a good incentive for participation. Implications of the findings for social policy and programme development, especially to the socio‐cultural context of Taiwan, are discussed.     

Unemployment, shame and ill health — an exploratory study

Unemployed young people in six Swedish municipalities were studied in respect of the degree of shaming elements experienced by them in their social environment and in respect of mental ill health. The nature of the investigation was exploratory. The study shows that experience of shaming elements in the environment owing to unemployment is relatively frequent. A larger proportion of the long-term unemployed and men account for more shaming elements than do the short-term unemployed and women. It seems as if the factor of shaming elements in the environment is important in order to understand the adverse health-related consequences of unemployment. A greater proportion of those who live in a more shaming environment show mental disorders, deteriorated health, changes in living habits, activities and social relations, than do those living in a less shaming environment. This report discusses possible explanations of the results in the light of existing moral concepts of work and unemployment, as well as of shaming attitudes towards the unemployed.     

Welfare Chauvinism in Populist Radical Right Platforms: The Role of Redistributive Justice Principles

Welfare chauvinism has become an important element in the agenda of the populist radical right. This article proposes a novel argument to explain variation in the strength of welfare chauvinist appeals across social policy programmes. It theorizes that the redistributive justice principles (equity, equality, and need) that underpin a social programme matter. Equality‐ and need‐based programmes are more likely to contradict a nativist worldview in principle or practice, whereas equity‐based schemes are less vulnerable to welfare chauvinistic appeals. As a consequence, welfare chauvinism should be targeted at social policies that provide universal or means‐tested benefits. Insurance‐based systems are more likely to be immune. This argument is tested through a qualitative content analysis of populist radical right election manifestos in four West European democracies. The results show that insurance‐based systems (pensions, unemployment) are less likely to attract welfare chauvinism, whereas universal healthcare and means‐tested social assistance programmes are more prone to draw nativist appeals. Universal family allowances, however, are less likely to attract welfare chauvinism than predicted by the theory.     

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.     

Sense of coherence during unemployment

The aim of this study was to investigate the relation between different forms of hardship during unemployment and the sense of coherence (SOC). These hardships were considered in the framework of the finances–shame model, which has been developed to help provide a greater understanding of why unemployment is so painful to some whilst others are hardly affected by it. The hypothesis in this study was that the greater the financial hardships during unemployment and the more a person has been subjected to shaming by others because they are unemployed, the lower his or her SOC will be, and vice versa. The empirical data were collected by means of a cross-sectional survey of 1,249 unemployed people in a region in southern Sweden who at the time of the survey were engaged in some form of labour-market training or workfare programme. The dropout rate was 23%. The results from the study lent strong support to the finances–shame model. Among those who were exposed to a greater degree of financial hardship and also had more shaming experiences, the mean SOC score was 42.14 for women and 42.41 for men. The corresponding figures for those facing a lesser degree of financial hardship and with fewer shaming experiences were 67.10 and 66.66 respectively, i.e. figures which are on a par with or somewhat higher than for population studies covering the whole population.     

Reversing the Negative Experience of Unemployment: A Mediating Role for Social Policies?

This article examines why unemployment is often experienced in a profoundly negative way, and explores the potentially mediating role of social policies. Three dominant theories of unemployment are described, which are often treated as competing, mutually exclusive explanations of the deleterious effects of unemployment. Subsequently, and through drawing upon a qualitative study of unemployed people, it is argued that all three theories are of worth and can be synthesized into a broader explanation of the experience of unemployment as an overarching process of loss. Three forms of loss are identified: loss of agency; loss of the functions of paid work; and loss of social status. The article then explores how these forms of loss can be both ameliorated and intensified through social policy interventions. Concluding, it offers policy recommendations to increase the efficacy of social policies in reversing the negative experience of unemployment, with the conclusion that this will require significant reform of the UK welfare state.     

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.     

Explaining differences in unemployment benefit takeup between labour migrants and Dutch native workers

The large increase in Eastern European migrants entering the Dutch labour market has led to concerns about their potential claim on Dutch unemployment benefits. We use a decomposition analysis to investigate differences in uptake of unemployment benefits between migrants and native Dutch employees by analysing register data for all employees in the Netherlands in 2015. The results show that Eastern European migrants, similar to other migrants, receive unemployment benefit more often than native Dutch employees. This difference can be largely ascribed to job characteristics. The inclusion of unemployment risk in the analysis reveals that non-working migrants are much less likely to receive unemployment benefits than Dutch natives.     

Long-Term Unemployment

The author writes from the viewpoint of Chairman of an Area Board of the Manpower Services Commission involved in practical responses to present unemployment and in training programmes for 16 to 18 year olds. He reviews the various interpretations of the nature of unemployment noting that a high level of unemployment is now very general in industrial societies. Training is an important adjunct to employment in a technological and rapidly-changing society, but of itself it does not solve unemployment. Structural changes are required, many of these uncomfortable to the majority who are in profitable employment. Various partial remedies are reviewed but none of them on its own is found to be a full solution, neither is a reform of income distribution methods found satisfactory. The conclusion is that there are many aspects of unemployment and the solutions to it are complex and many-facetted.     

UNEMPLOYED? BOARD THE ENTERPRISE FOR A BRAVE NEW WORLD AND A ‘REAL’ JOB: A CRITIQUE OF THE NEW STRATEGY FOR REDUCING UNEMPLOYMENT

This paper argues that the changes to the delivery of labour exchange assistance to the unemployed, initiated in the 1996 Federal Budget, are unlikely to deliver on the promise of ‘Helping Australians into Real Jobs’. The changes posited by the government are more realistically viewed as a trend to divesting itself of cost intensive functions through the mechanisms of corporatisation and privatisation. Through an analysis of service expectations, the author suggests that the creation of the employment services market will neither build confidence in the Government's strategy to contain unemployment, nor have a positive impact on reducing levels of unemployment. PEPE Ltd, the government owned employment placement enterprise, faces an interesting future as it competes in an open employment services marketplace. It is further suggested that the privatisation trend has serious implications for equitable service delivery to unemployed Australians.     

Disability benefit reform in Great Britain from the perspective of the United States

In 2008, Great Britain overhauled its disability benefit programme by introducing a new disability determination process called the Work Capability Assessment and a new earnings replacement programme called Employment and Support Allowance. This article examines the British reforms from the perspective of the United States, which may consider changes to its disability benefit programme, the Social Security Disability Insurance programme, in the near future. The article provides an overview of the steps leading to the reform in Great Britain, details how the new programme operates, reviews research on its initial implementation and effects, and identifies lessons for the potential reform of the disability benefit programme in the United States.     

Confusion behind the dikes

Twenty years ago Dutch society was hit by a serious rise of unemployment that put the Dutch welfare state to the test: Should the welfare state be able to preserve full employment and prevent unemployment from becoming high and chronic as in the 1930s? And should the welfare state be able to prevent mass poverty as in the 1930s? The answers are well known. The ‘Dutch welfare state has not been able to forestall persistent high unemployment and, in fact, has more or less produced a dual society (Zweidrit-telgesellschaft, sociéte à deux vitesses), although without producing mass poverty. This article goes into three issues related to these developments. A bird's-eye view is presented of the unemployment trajectory of the 1970s, 1980s and the first half of the 1990s. The position of the Netherlands relative to other countries in Europe is unfolded. Some issues concerning the effects of chronic unemployment on the functioning of the Dutch political economy are presented.