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.     

Welfare and Democratization – Comparing Croatia,Serbia and Macedonia

The article discusses the main determinants of welfare transformation after the regime change from communism towards democracy. The states of the former Yugoslavia, notwithstanding a common welfare state structure, albeit at different quality levels, after departing communism developed diverse trajectories. In response to the wars, war‐related consequences and growing economic pressures, the national political elites in Yugoslav successor states initially extended welfare provisions and thus thwarted popular mobilization. The international actors' agenda gained ground in a setting characterized by nationalistic resentments, popular disorientation and elite capture. What the analyzed country cases suggest is that democratization has contributed to making reforms more responsive to public concerns. On the other hand, ‘defective’ systems continue to impede economic development and compromise the welfare state's redistributive role.     

Chinese Workfarism: Logics and Realities of the Work–Welfare Governance Model

Given the fundamental disparities between China and the west in political structures, social values, policy regimes, and problem loads, it is meaningful to use “workfare” as a challenging analytical standpoint and detect that China had created unique workfare regimes to build up the past state‐socialism and the present market‐socialism. In the era of state‐socialism, the dual‐track welfare system, apparently adopting an institutional approach to the city and a residual approach to the countryside, was purposely integrated with the segregated urban‐rural work system, constituting a China‐specific workfare regime in which the whole workforce was included and effectively organized into the socio‐economic order. Under market‐socialism that appears as an awkward hybrid, the work‐welfare governance model is being gradually transformed into a pragmatic, much marketized one, though without idealogical legitimacy as well as a clear‐cut vision. On the one hand, employment differentiation and income disparity resulted from a strategic shift from the “reform‐without‐losers” stage to the “reform‐with‐losers” stage in the labor market, together with a large scale rural‐to‐urban labor migration, are structuring a market‐oriented, stratified employment system. On the other hand, while being a welfare laggard, China's productivist, status‐segregated welfare system is taking shape owing to a set of welfare reforms along the line of marketization and societalization. All these changes would imply that China is converging towards a neo‐liberal regime in which the role of the state is residual to the market.     

Swedish Family Policy – Continuity and Change in the Nordic Welfare State Model

The main question addressed in this regional issue is whether or not the Nordic welfare states can still be considered a distinct welfare regime cluster given recent changes, such as the introduction of more private elements into the welfare state. The Nordic welfare states are often described as emphasizing full employment, economic and gender equality, and universal access to cradle‐to‐grave welfare state benefits and services. In the case of Sweden, often pointed to as the model of a social democratic welfare state, such elements remain intact in most aspects of the welfare state, even given the challenges presented by the global neo‐liberal economic paradigm since the 1970s. One way to determine whether or not the Nordic welfare states remain a distinct cluster is to provide an in‐depth examination of various welfare state policies in each Nordic country. To contribute to this analysis, an investigation of family policy in the Swedish context will be provided. Even given recent challenges, such as the introduction of private for‐profit childcare providers and a home care allowance, I argue that Swedish family policy has remained largely social democratic in its underlying goals, and thus acts to support the case for a distinct Nordic welfare regime cluster.     

SOCIAL ENTREPRENEURSHIP — FALSE PREMISES AND DANGEROUS FOREBODINGS

As a reaction against neo‐liberalism, Social Entrepreneurship has been promoted as the solution to welfare problems brought about by social change and persistent unemployment. The Social Entrepreneurship Movement (SEM) proposes the reconstruction of welfare by building social partnerships between the public, social and business sectors. Major aspects of this agenda include non‐profit organisations undertaking entrepreneurial ventures and the pooling of government welfare funding under the control of local communities. In this paper we argue that the SEM literature is based on two false premises: the failure to understand the true causes of mass unemployment, and the assumption that the government faces financial constraints in the provision of welfare services. We also argue that implementation of the SEM proposals would erode the rights‐based eligibility to universal welfare services based on the principle of social justice. We also conclude that the SEM is indistinguishable from neo‐liberalism and as such does not represent a viable solution to unemployment and the welfare needs that accompany it.     

From State Security Model to Selective + Residual Security Model: Health care regime shift in urban China

Based on the study of welfare states, welfare regime theory (WRT) has been widely applied to international and regional welfare regimes and to specific‐policy comparative studies. However, the health care system has often been neglected in this area of study. The current study promotes a health care regime approach that is influenced by WRT and incorporates analysis of the level of health care de‐commodification and health equity. Three types of health care regimes were identified in the development of the health care system in urban China: the State Medical Security Model, the Selective Medical Security Model and the Selective + Residual Medical Security Model. This approach provides useful policy implications for the health care reform currently taking place in China. In addition, this analysis contributes to theories in the comparative health policy literature.     

Welfare State Changes and Outcomes – The Cases of Portugal and Denmark from a Comparative Perspective

It is well known that welfare states ensure a certain level of social protection affecting levels of well‐being and the extent of inequalities in society. Changes within crucial domains of social policy, such as education, health, or social protection, have, therefore, a major effect upon individuals' opportunities. In this article I compare the effects of these changes in two countries from the mid‐1980s to the financial crisis of 2008. Portugal that was a latecomer in welfare state development and Denmark was at the forefront of de‐commodification and universalization of social rights. The conclusion of this article is that income inequality has been steadily increasing in Danish society; while in Portugal, despite improvements in many social domains (healthcare, poverty alleviation, unemployment protection), problems of inequality remain deeply embedded in the country's social and institutional structures.     

Unemployment Protection and Family Policy at the Turn of the 21st Century: A Dynamic Approach to Welfare Regime Theory

This article contributes to the welfare state regime literature from a substantive and methodological perspective. At a very abstract level we confirm the relevance of the welfare state regime theory and stability for the period from 1971 to the end of the 1990s. However, by analyzing family policy and unemployment protection, we observe a dual transformation of the welfare state, consisting of a trend towards a ‘socialization’ of family policies and a retrenchment in unemployment insurance benefits. Our Multiple Correspondence Analysis (MCA) of the two policy domains captures the multi‐dimensionality of the decommodification and defamilialization concepts and visualizes welfare state developments over time in a Cartesian space. This dynamic analysis provides us with a nuanced understanding of welfare state regime stability and change.     

Supplemental home care and topping‐up: A shift from service universalism towards a new and privatised public service model?

How does a public service model based on service universalism react to the introduction of market principles of topping up? In a recent so‐called Free Municipality Scheme (an experimental scheme that allowed for greater operational autonomy locally in an effort to reduce state bureaucracy), a number of Danish municipalities were for the first time ever allowed to compete with for‐profit providers of home care in selling supplemental home care services paid entirely by the user. The take‐home message from this experience is that the introduction of supplemental home care entails challenges and eventually wider implications for the public service model, on an economic, organisational and cultural level. Supplemental services represent a new and potentially powerful combination of market and state logics that eventually redirects away from the universalist welfare state and towards a new and increasingly privatised public service model – a model where the service level is determined by the user's capacity to purchase and pay for services. The introduction of such services therefore implies a change of the potential of the Nordic welfare state to ensure equal access regardless of class and income.     

A Bedrock of Support? Trends in Welfare State Attitudes in Sweden, 1981–2010

This article reports findings about Swedes' attitudes towards the welfare state from 1981 to 2010, building on data from the Swedish Welfare State Surveys. Attitudes towards social spending, willingness to pay taxes, attitudes towards collective financing and public organization, suspicion about welfare abuse, and trust in the task performance of the welfare state are tracked. Overall, there is a large degree of stability in attitudes, and where change is registered, it tends to go in the direction of increasing support. More people state their willingness to pay higher taxes for welfare policy purposes; more people want collective financing of welfare policies; and fewer people perceive extensive welfare abuse in 2010 than was the case in previous surveys. Class patterns change so that the salaried and the self‐employed become more similar to workers in their attitudes. Hence, the unprecedented election loss of the Swedish Social Democrats in 2010, and the rise of the Moderates (conservatives) as the dominant party cannot be explained by changing attitudes towards the welfare state. Nor can any corrosive effects from increased marketization of the Swedish welfare state on public support for welfare policies be detected.     

‘Let the King Save the Poor’: The Discursive Mechanism Underlying the Under‐exercise of Social Rights in South Korea

This study was prompted by discrepancies observed between the quantitative expansion and the qualitative stalemate in social policy in South Korea. Despite a revamped social security system, changes in South Korean social policies have not led to significant coverage expansion or improved income and poverty distribution. The frequent appearance of the Korean proverb that ‘even the King cannot save the poor’ in policy participants' narratives reflects a lack of confidence in the Government's ability to address persistent social disadvantages and the prevalence of a fatalistic policy perspective. This proverb has a conceptual affinity with an individualistic approach and has effectively functioned as a governance tool to oppress the progress of welfare rights. This research shows that an expenditure‐based model could lead to actual policy situations being misrepresented. Further, institutional policy arrangements may not be a sufficient condition for improving policy performance. It is suggested that a rights‐based approach should be adopted for both theorization of the transition of the welfare regimes and discursive practice for a policy paradigm change.     

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.     

The Rise and Fall of Unemployment Insurance in Israel

The Israeli unemployment insurance (UI) programme was adopted in 1972 but, in the three decades since, it has undergone major changes. As a result of these changes, the programme is currently far less accessible and less generous than it was in its original form. This article documents the policy process that led to retrenchment of UI in Israel. This process was justified by a professed desire on the part of decision-makers to deal with the problem of the unemployment trap caused by UI and was facilitated by a legislative manoeuvre that enabled the State to overcome institutional obstacles to change within the Parliament.     

Mandatory occupational welfare: Severance pay as an unemployment compensation instrument

This study focuses on the conceptual and empirical development of severance pay (SP)/redundancy pay schemes established through centralized collective agreements (in Nordic countries) and legislation for unemployment compensation. It argues that these “mandatory” occupational welfare benefits have been neglected in social policy debates due to the ambiguity in their conceptualization, overemphasis on their cost implications, and the nonrecognition of their redistributive effects. The study offers quantitative indicators to analyse SPsapos; redistributive structure (coverage, generosity, and benefit equality) during the Global Recession in Canada, the United Kingdom, Australia, Ireland, France, Germany, Austria, Spain, Portugal, Denmark, and Sweden. The findings demonstrate that SP schemes possess distinctive elements in Southern European, Continental European, Anglo-Saxon, and Nordic clusters. The indicators are also used to analyse the interplay between these schemes and unemployment insurance/assistance in these clusters.     

Narrowing of Public Responsibility in Finland, 1990–2010

Public responsibility in Finland has narrowed in the last 20 years while the sphere of the private sector has been increased. The economic crisis of the early 1990s was not the cause, but an accelerator of public sector/welfare state retrenchment in Finland. Based on which, it was easy for the advocates of neo‐liberal reforms to argue that the changes were a must. The welfare state programmes however, are popular among the Finnish population and therefore large one‐time cutbacks have not been possible beyond the immediate aftermath of the economic crisis. This article looks into three different methods through which the Finnish welfare state has been gradually cut since then: (1) by not raising income transfers along with the rising cost of living and wages; (2) by reducing funding of public services; and, on the other side of the coin (3) through regular tax cuts contracting the revenue side. Welfare state retrenchment in Finland has therefore been achieved in a subtle fashion through slow gradual weakening of social programmes on one hand, and through cuts in revenue on the other that have left proportionally more in the hands of the wealthier. These combined movements have resulted in a drastic reversal in the trend in income inequality in Finland.     

Activation Reform and Inter‐Agency Co‐operation – Local Consequences of Mixed Modes of Governance in Sweden

Organizational reform has become a recurring solution to problems of social exclusion and unemployment. In Europe, and other parts of the world, there is a trend towards policies of ‘activation’ in employment and social policy. The idea of flexible, individualized and tailor‐made services is coupled with managerial and market‐based reforms as well as collaborative governance. In these complex structures of service provision, coordination and inter‐agency co‐operation have become key concerns. Based on a study of a recent reform of programmes for newly arrived refugees in Sweden (Etableringsreformen), this article seeks to contribute to the literature on governance of ‘activation’ by examining the consequences of mixed modes of governance (market and collaborative) on local inter‐agency co‐operation. Drawing on data from in‐depth case studies in two municipalities, it is demonstrated how the coupling of managerial practices and quasi‐markets with existing collaborative arrangements has created barriers for inter‐agency co‐operation. The results indicate that institutional tensions between governance forms represent an important factor for explaining governance failure in this policy area.     

Cash for long‐term care: Policy debates,visions, and designs on the move

Cash‐for‐care (CfC) schemes have introduced a key transformation in long‐term care policies across Europe since the 1990s. The article explores the extent to which CfC policies have changed over time and into which directions, the ways in which change (if any) has occurred and the forces underlying it. By combining the literature on institutional change with ideational approaches, the article focuses on policy theories and policy designs, on modes of change and factors pushing for change within the CfC policy, and in the long‐term care and neighbouring policy fields. In doing so, we aim to contribute to understanding institutional change and the transformation of an increasingly important sector of the welfare state.     

Stability and change – a 7‐ to 8‐year follow‐up study of mental health problems in Norwegian children in long‐term out‐of‐home care

The aim of the study was to explore stability and change in mental health problems in Norwegian children aged 6–12 years old (n = 70) in long‐term out‐of‐home care. The children's mental health problems were assessed shortly after the placement and 7–8 years later by the caregivers and the teachers on the Revised Rutter Scales. Information on pre‐placement and placement factors were collected from the child welfare workers. At a group level the children's mental health problems had improved significantly over time according to the teachers' reports. According to the caregivers' reports, however, the children's problems were high and stable across time. Analyses aimed at detecting individual changes revealed a great variability in development according to both informants, indicating that treating the placed children as a homogenous group could be misleading. Several pre‐placement and placement variables were associated with the change in the children's mental health problems from the time of placement to the follow‐up time according to both informants' reports. However, all the predictors were accounted for by the strong effect of the children's problem scores when entering care.     

Unemployment Insurance Reform – 1991–2006: A New Balance between Rights and Obligations in France,Germany, Portugal and Spain

The purpose of this article is twofold. First, focusing on unemployment insurance schemes, the article seeks to identify the development of social rights and obligations in four countries (France, Germany, Portugal and Spain), representative of the conservative regime, over the period 1991–2006. Second, the article aims to verify whether or not there was a common reform trajectory in time as well as in space, given the already known divergence over the appropriateness of classifying Mediterranean countries within the framework of a specific regime. Based on analysis of 25 legislative changes concerning entitlement and eligibility criteria, the study presents three major findings. First, the four insurance schemes reveal a new balance between (weaker) social rights and (stronger) obligations, which may indicate a trend toward a re‐commodification of work. Second, Portugal adopted a specific trajectory while the Spanish reform process more closely resembled that carried out by France and Germany. Finally, two waves of reform may be identified: first, between 1991 and 1997 and justified by cost‐containment concerns and, subsequently, from 2001 onwards, associated with a stronger recalibration of benefit rights.     

You can go your own way! The long‐term effectiveness of a self‐employment programme for welfare recipients in Germany

In this study, we examined the long‐term effects of supporting welfare recipients by means of a subsidy to start their own business. We used administrative data and propensity score matching to estimate the impact of the subsidy on the probability of receiving welfare benefits and on unemployment status up to 72 months after programme start. We supplemented our estimation results with the results of a qualitative survey which provided insights into the diversity of entrepreneurial activities and the recipients' motivation for starting a business. Our results are encouraging. We found a stable positive effect on the outcomes of interest. We further found that foreign nationals and the long‐term unemployed benefit the most. We conclude that the subsidy allows some people to successfully start a business who would not have otherwise done so and who would have been less successful by choosing the alternative of continued job search.