Expanding economic protection to the elderly in Latin America

This article addresses the reforms introduced in Latin American pension systems that had the aim of increasing coverage beyond formal‐sector workers. For this purpose, fourteen representative regional experiences are analysed using a taxonomy based on features of the cases examined in terms of design, implementation and results. The findings show that, although the reforms share the goal of expanding coverage, there are significant differences deriving from the context in which they were originally designed, their goals, and the capacity available to implement them. The results are not homogeneous, and it is possible to identify some aspects in which policy decisions can lead to better or worse results.     

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.     

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.     

The impact of the European Youth Guarantee on active labour market policies: A convergence analysis

The European Union’s (EU) Youth Guarantee aims to improve the labour market situation of young people. Rather than prescribing a uniform policy model, it acknowledges that supportive measures need to align with national, regional and local circumstances. It thus seeks to promote mutual policy learning through the open method of coordination. As an innovative measure, the EU has deployed funding programmes to support the domestic measures related to the Youth Guarantee. We therefore examined in this study whether this mix of recommendations and financial incentives has entailed a convergence of member state policies. Our analysis of policy outputs for the period 2007?2014 yields a mixed empirical picture. There is catching‐up convergence regarding policies’ sectoral coverage but increasing divergence concerning the number of adopted policy instruments. The first two years of financial incentives did not produce any effect on enhancing policy experimentation among less active member states. We offer an optimistic and a pessimistic interpretation of these findings.     

New social risks in postindustrial society: Some evidence on responses to active labour market policies from Eurobarometer

One result of the complex economic and social changes currently impacting on state welfare is the emergence of what may be termed "new social risks" as part of the shift to a postindustrial society. These concern access to adequately paid employment, particularly for lower-skilled young people, in an increasingly flexible labour market, and managing work-life balance for women with family responsibilities engaged in full-time careers. They coexist with the old social risks that traditional welfare states developed to meet, which typically concern retirement from or interruption to paid work, in most cases for a male "breadwinner". New social risks offer policymakers the opportunity to transform vice into virtue by replacing costly passive benefits with policies which mobilize the workforce, arguably enhancing economic competitiveness, and reduce poverty among vulnerable groups. However, the political constituencies to support such policies are weak, since the risks affect people most strongly at particular life stages and among specific groups. This paper examines attitudes to new social risk labour market policies in four contrasting European countries. It shows that attitudes in this area are strongly embedded in overall beliefs about the appropriate scale, direction and role of state welfare interventions, so that the weakness of new social risk constituencies does not necessarily undermine the possibility of attracting support for such policies, provided they are developed in ways that do not contradict national traditions of welfare state values.     

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

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

Social Policy and Development in Latin America: The Long View

In the new development strategy currently shaping Latin America, alternative social policy models have emerged. This article argues that far from being rival alternatives, each of these models considers the wide differences among countries. The region is emerging from a century of transformation – from a traditional agrarian economy to an urban industrial one – in which countries have taken diverse historical paths. Some have almost completed this transformation, others are taking early steps, and the vast majority are living through it. State‐led transition has followed two successive development strategies. From the 1920s up to the 1980s, state developmentalism has mostly successfully assumed the twin challenges of economic and social progress. In the last two decades of the century, Latin American states adopted the policies of the Washington Consensus, which emphasized the importance of business in the framework of globalization and benefited the affluent few. However, an unambiguous shift in direction has been taking place in Latin America since the 1997 economic crisis. This article suggests that a new developmental welfare state model seems to be in the making. How will it evolve over the wider space of an increasingly integrated Latin America?     

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.     

Chile and beyond: The second-generation pension reforms in Latin America

In the early 1990s, pension reforms leading to substantial changes in the organization and financing of old age security were undertaken in Argentina, Colombia and Peru. Implemented ten years after the pioneer reforms in Chile, they have taken advantage of the experiences and lessons of the Chilean case; at the same time, the second-generation reforms clearly demonstrate the restrictions policy makers are being faced with in a democratic political context. This paper examines the recent pension reform experiences in Latin America and discusses their implications for a modified concept of old age security.     

Youth‐oriented active labour market policies and economic crisis: Explaining policy effort in Greece and Portugal

The starting point of this study is the implementation of seemingly similar youth‐oriented labour market policies in Greece and Portugal. Both countries have suffered high youth unemployment rates and have been pressured to restructure their labour market as part of the rescue programmes adopted during the European sovereign debt crisis. Despite convergence in terms of policy trajectories, there is a significant divergence in employment outcomes. In Portugal, youth‐oriented policies were better‐targeted and structured. Their implementation has been more effective and has involved the social partners from the outset of the crisis. In Greece, policy design failures, administrative weaknesses and unfavourable macroeconomic conditions have limited the dynamics of youth‐oriented policies thus increasing youth insecurity. Τhe analysis suggests that convergence in policy content can be compatible with divergence in terms of outcomes.     

The Retrenchment of the Welfare State in Latin America: The Case of Argentina

According to the conventional approving account of the transformations which have been taking place in public policy and in markets in Latin America, Argentina constitutes one of the most successful examples of wide-ranging and rapid change. Certainly the experience of Argentina offers an excellent case-study of what in the literature is termed " the retrenchment of the welfare states"; that is those institutional transformations associated with the "neoconservative revolutions" of recent years. In this paper I analyse the characteristics of Argentinian welfare state retrenchment, distinguishing between two fields of analysis: (1) "systemic retrenchment" which is linked to changes in the "referential environment" of social policy institutions, especially changes in the economic, fiscal, labour market and politico-institutional contexts: (2) "programmatic retrenchment" which refers to changes in the institutional ordering of specific social policies. Finally I draw conclusions in respect of the strategies adopted for the retrenchment of the welfare state in Argentina and discuss probable prospects for the future.     

The coverage of social protection in the Global South

About 73% of the global population is not, or is only partly, covered by social protection. Particularly across low‐ and middle‐income countries (LMICs), social protection coverage is highly heterogeneous. What explains the large differences in the inclusiveness of social protection across LMICs? By analysing 100 LMICs using retirement schemes as an example, this study shows that non‐contributory schemes in LMICs are, by far, more inclusive than contributory ones. Surprisingly, democratic institutions characterised by low levels of political corruption only promote the inclusiveness of non‐contributory social protection while reducing the coverage of contributory schemes.     

The policies of unemployment protection in Europe

The abundant literature on welfare state policies, regimes or ‘worlds’ has been only limitedly interested in unemployment protection, and even less in youth unemployment protection. What is clearly lacking in the literature is an updated analysis of the most recent policies developed in European countries targeting youth. This mini‐symposium aims to fill in this gap by presenting findings from an EU‐funded research project entitled ‘Youth, Unemployment and Exclusion in Europe: A Multidimensional Approach to Understanding the Conditions and Prospects for Social and Political Integration of Young Unemployed’ (YOUNEX). The main aim of the research endeavour was to develop theory and contribute to empirical knowledge concerning the social and political exclusion of unemployed youth in Europe.     

Poverty Reduction: The Missing Piece of Pension Reform in Latin America

Employment‐based pension plans constitute the main form of pension provision in Latin America. Although recent pension reform in the region has focused on strengthening these, old‐age poverty remains high in most countries in the region, with older people over‐represented among the poor. The article argues that ensuring old‐age support for poor and vulnerable groups involves a different set of priorities and options for pension reform, namely a strong focus on tax‐financed public cash transfer programmes. Cash transfer programmes focused on poor older people are the missing piece of pension reform in the region. The article examines the experience of the handful of countries with such programmes in place, and draws the lessons for the future of social policy in the region.     

The Role of Insurance in Social Protection in Latin America

Social protection schemes in Latin America face serious short falls in the financial resources available to meet their needs. New types of insurance envisaged in reforms should help to contain costs and increase coverage. However, in strengthening schemes' coverage it is highly probable that considerable demand for additional financial resources will arise to address the need to introduce the principle of solidarity into the system. This article examines reforms in the financing of social security for healthcare and pensions, highlighting the implications of various public-private combinations for financial management and coverage.