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.     

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.     

Balancing work and welfare: activation and flexicurity policies in The Netherlands, 1980–2000

As a result of the flexibilisation of labour and the trend towards the 'activating welfare state', social policies show an increasing interconnection of work and welfare issues. The Netherlands is no exception. It is generally believed that the Dutch welfare state is successfully activating its unemployed labour potential (often referred to as the 'Dutch Miracle'), and that flexible and part-time work is protected by adequate 'flexicurity'. This article critically reviews Dutch activation and flexicurity policies. It concludes that there is still more unemployment than the miracle-story suggests; that important target groups of activation policies have not profited from 'the miracle'; that part-time workers have sufficient social protection but that social security for flex-workers still needs major improvements, despite favourable adjustments of labour law.     

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.     

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.     

Feeling motivated yet? Long‐term unemployed people's perspectives on the implementation of workfare in Australia

A key thrust of labour market policy in Australia and many other western countries is that long‐term unemployed people lack the personal motivation to engage proactively and successfully in the search for paid employment. In this paper we argue that the implementation of what are experienced as paternal workfare programs are counter‐productive to achieving the official policy goal of improving self‐efficacy and gaining paid employment. The empirical discussion presented in the paper is based on a semi‐longitudinal study that tracked 75 long‐term unemployed people in three different labour markets in Australia between 2005–2007. The study was funded by the Australian Research Council and Jobs Australia.     

Importing Workfare: Policy Transfer of Social and Labour Market Policies from the USA to Britain under New Labour

Britain's New Labour government has put welfare reform at the top of its political agenda. It has followed a radical “workfare” agenda in relation to labour and social market policies and no longer aims to secure full employment mainly through direct job creation or Keynesian demand management. Instead, it promotes equal opportunity for all based on a contract between benefits claimants and the employment service. The New Deal is at the heart of British activation programmes for the unemployed. American policy paradigms have influenced the design of the New Deal. Policy transfer in activation policies from the USA to Britain is due to institutional similarities in British and American welfare states on the one hand, and to the comparable structure of their labour markets on the other hand. The influence of the European social model on British labour market policies thus remains limited.     

Employment relations and dismissal regulations: Does employment legislation protect the health of workers?

Sociologists have long acknowledged that being in a precarious labour market position, whether employed or unemployed, can harm peoples' health. However, scholars have yet to fully investigate the possible contextual, institutional determinants of this relationship. Two institutions that were overlooked in previous empirical studies are the regulations that set minimum compensation for dismissal, severance payments, and entitlements to a period of notice before dismissal, notice periods. These institutions may be important for workers' health as they influence the degree of insecurity that workers are exposed to. Here, we test this hypothesis by examining whether longer notice periods and greater severance payments protect the health of labour market participants, both employed and unemployed. We constructed two cohorts of panel data before and during the European recession using data from 22 countries in the European Union Statistics on Income and Living Conditions (person years = 338,000). We find more generous severance payments significantly reduce the probability that labour market participants, especially the unemployed, will experience declines in self‐reported health, with a slightly weaker relationship for longer notice periods.     

Structural unemployment. An analysis of recruitment and selection mechanisms based on panel data among Danish long-term unemployed

The perception of structural unemployment – summarised in the notion of 'Eurosclerosis'– became almost hegemonic during the 1990s. Policy makers all over Europe tried, by means of supply-side policies, to counteract the lack of incentives in the developed European welfare states, the lack of qualification on the post-industrial labour markets and the personal decay due to long-term unemployment. However, based on the critical case of Denmark, this article challenges the perception of structural unemployment and suggests an alternative business cycle/barrier perception. At the macro level it is difficult to explain the Danish decline in unemployment from 1994 to 2000 within the structure perception. The lack of explanatory power of the structure perception is further highlighted in micro-level analyses conducted on a panel study of long-term unemployed. Based on the unemployed's own assessments, we find no indications of supply-side problems. These results are supported by analyses of actual labour market integration of the long-term unemployed in the period between 1994 and 1999, which show that education level and previous unemployment had no noteworthy influence on labour market integration, whereas age had a decisive influence. These surprising results further undermine the perception of structural unemployment and the supply-side policies rooted in this 'mistaken' problem definition.     

Jobless or Working Poor in the Kyrgyz Labour Market: What Role for Social Policies?

This paper attempts to identify the multiple aspects of vulnerability in the Kyrgyz labour market. Particular attention is devoted to the working poor and precarious workers. This analysis is undertaken using the Kyrgyz Poverty Monitoring Survey, which is the only survey to date that allows a comprehensive analysis of poverty and labour market outcomes in the Kyrgyz Republic. The period under investigation covers the years 1997 to 1998, for which data are available. The results point to the extreme vulnerability of individuals with less education and women, who cumulated a high risk of being unemployed, of remaining longer in unemployment, of being discouraged unemployed and, if employed, of being low‐paid or working in precarious jobs. Other groups facing a high risk of exclusion, both from and within employment, were people with disabilities, individuals living in rural or depressed areas, young people and internal migrants. The multiple aspects of vulnerability in the Kyrgyz labour market, in particular the large overlap between work and poverty, have important implications for the design of effective social policies.     

Employer‐oriented labour market policies in Sweden: Creating jobs and the division of labour in the public sector

In many European countries, greater importance is accorded to labour market policies in which employers are involved in activating unemployed people. Such employer‐oriented policies target employers’ demand for labour and attempt to influence their willingness to hire, train or guide (often disadvantaged) unemployed groups. Using data from a qualitative interview study of an employer‐oriented programme in a medium‐size city in Sweden, the present article aims to develop knowledge about how these policies are used to influence employers to hire unemployed workers and how jobs created in this context differ from regular jobs. The article argues that creating jobs through new arrangements for the division of labour, with the promise of relieving regular staff of unskilled tasks, may influence employers’ willingness to hire the unemployed when used alongside other kinds of policy instruments. However, the article also shows that this new division of labour, with programme participants performing mainly unskilled tasks, has been difficult to realize, as new staff gradually come to perform an increasing number of regular working tasks.     

Poverty, Social Exclusion and Social Policy in the Czech Republic

This article analyses the pattern of poverty and social exclusion in the Czech Republic and the impact of social policy on this pattern. The analysis is mostly based on data from the Czech Survey on Social Conditions of Households (2001; 27,000 respondents); Eurostat data provide a benchmark for making international comparisons. The poverty rate in the Czech Republic is among the lowest in Europe. On the other hand, material deprivation, as well as concentration of poverty within specific population groups, is high, with the unemployed facing the highest risk of poverty. Social policy measures in effect reinforce this pattern: while the benefit system is highly redistributive and effectively eliminates income poverty among households of employed persons and among pensioners, incomes of persons outside paid employment are protected less effectively. Labour market policy measures are insufficient in scope and inadequate in targeting groups which are facing the highest risk of labour market exclusion and poverty. We argue that although this practice is effective at present, it is not sustainable in the long term.     

The Political Consequences of Outsider Labour Market Status in the United States: A Micro‐level Study

This article contributes to recent research that seeks to understand the political consequences of ‘outsider’ labour market status. There is an emerging consensus that labour market outsiders have systematically different policy preferences and display systematically different political behaviour to securely employed ‘insiders’ in Europe. Yet the political consequences of outsider status in the USA are less clear. They may be expected to differ from those that have been documented in the European context, because: (1) the USA is characterized by low employment protection of insiders; and (2) there is evidence that Americans are more reluctant than Europeans to hold governments responsible for personal economic hardship. We therefore use the General Social Survey to examine how outsider labour market status is related to voting behaviour and to social policy preferences in the USA. We find that the concept of ‘labour market outsider’ – as conventionally operationalized – holds little explanatory power in the American context. Disaggregating the outsider category, our results suggest that the political consequences of outsider labour market status may be contingent on individual beliefs about government responsibility.     

Does Active Labour Market Policy have an Impact on Social Marginalization?

Countless evaluations of active labour market policy (ALMP) have been conducted in the last decade. The common denominator for most of these evaluations is a focus on employment (self‐sufficiency) as the dependent variable, where the success of ALMP is measured in terms of the number of unemployed finding ordinary employment after (or immediately before) participating in an activation programme. The main argument in this article is that this focus is inadequate. For many long‐term unemployed people, it would be an understatement to describe the road to employment as merely ‘bumpy’. Research must take this into consideration. This article therefore deals with the Danish activation policy from a new perspective by analyzing the impact on different aspects of social marginalization, focusing on long‐term social assistance recipients. Using data from a comprehensive, representative quantitative survey of Danish unemployed conducted in 2007, the first analysis convincingly reveals that we fail to find any systematic correlation between participation in ALMP and any of the social marginalization indicators. The second analysis presents a more mixed picture of the participant's own assessment of the impact of ALMP on their self‐esteem; some are quite positive, while others are more neutral or even rather negative. Taking the existing research into account, these results leave us with conceptual and methodological questions for further research.     

The "Employment-first" Welfare State: Lessons from the New Deal for Young People

New Labour is constructing an “employment‐first” welfare state. It plans through Jobcentre Plus to transform the passive culture of the benefit system by creating more explicit links between individual behaviour and engagement with labour market programmes. The New Deal for Young People (NDYP) has been at the forefront of these changes. This paper reports on the findings from four case studies that explored how the NDYP has changed young people's experience of the welfare state. It establishes that NDYP offers a mixture of employment assistance and “pressure” and has made progress in developing front‐line services and helping young long‐term unemployed people into work. NDYP does not, however, work for all. In areas of high unemployment and for some disadvantaged groups intermediate labour markets could enhance the New Deal and make real the offer of “employment opportunities for all”.     

Labour Force Participation,Social Inclusion and the Fair Work Act: Current and Carbon‐Constrained Contexts

The notion that employment is a precondition for personal wellbeing and social inclusion is almost sacrosanct in Australian culture. Yet, the working and living conditions of Australia's low paid workers tells a different story. While labour market participation is a cornerstone of the Federal Government's Social Inclusion Agenda, it is recognized that low pay and poor job quality often derail this key objective. Indeed, the difficulty of ‘making work pay’ at the bottom end of the labour market is a social inclusion challenge that has yet to receive the policy or public attention that it warrants. This article considers what the Fair Work Act means for the social inclusion of disadvantaged workers, in the context of wider‐ranging strategies to address low pay. It concludes with some considerations of the challenges that a carbon‐constrained economy is likely to present for labour force participation as a remedy for social exclusion.     

Differences in Well‐being among People with Disabilities in Paid Employment: Level of Restriction,Gender and Labour Market Context

This study investigates the variability in well‐being of people with disabilities in paid employment in two different labour market contexts: the beginning (1998) and end (2009) of a period of growth in non‐standard hours and work intensification. It focuses on the well‐being constraints that arise from three influences: a person's disability, a person's gender, and the labour market context. Hypotheses are developed using the social model of disability and social identity theory. Hierarchical moderator regression is employed to examine two national samples of nearly 4,000 people with disabilities in paid employment. Individuals who are most limited by their disabilities, particularly women, reported lower well‐being in 2009 than in 1998. Welfare‐to‐work policies affecting these disadvantaged groups are discussed in relation to the labour market and national regulatory environments.     

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.