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.     

Political trust,young people and institutions in Europe. A multilevel analysis

The constant decline of political trust has been shown in political sociology. Young people in particular seem to display lower levels of political trust, which is a challenge for the sustainability of democracy. Still, these levels of political trust among youth differ greatly from one country to another. This article therefore seeks to answer the following question: How can we account for cross‐national diversity with regard to young people’s political trust? To answer this question, I performed multilevel analyses based on data from the European Social Survey. I show in the article that cross‐national diversity stems from the institutional arrangements that structure entry into adulthood, i.e., what I call ‘youth welfare citizenship regimes’: The more inclusive is the youth economic citizenship and the more individualised is their social citizenship, the higher is young people’s political trust – which could buffer the decline in political trust.     

Youth‐focused active labour market programmes in a constraining welfare regime: A qualitative reading of programmes in Egypt

Active labour market programmes (ALMPs) are at the core of welfare regimes in many countries across the world. This study addressed youth‐focused ALMPs in Egypt, a country with high youth unemployment and a plethora of programmes ostensibly addressing this issue. Building on interviews with implementers, programme documentation and a publically accessible inventory of programmes in Egypt, the analysis locates ALMPs within the country's overall welfare system and the politics of programme targeting, design, governance and implementation modalities. The legacy of state ‘protective’ policies and the fragmented multiplicity of players within the field constrain the effectiveness and outreach of these programmes. Analysis of implementation modalities also shows that there is a pervasive lack of programme coordination, activity documentation, management for results, and pathways to achieving sustainability and programme institutionalisation. Key Practitioner Message: ? Egypt's fragmented ALMPs field must be integrated and coordinated within the country's broader welfare system ? Programme documentation, management of results, rigorous evaluation and sustainability plans must be seriously addressed     

The Politics of Welfare State Retrenchment: A Literature Review

Welfare state retrenchment is widely seen as a highly unpopular endeavour and, therefore, as politically difficult to pursue. This assumption has underpinned most of the political science research on this issue, notably Paul Pierson's seminal contributions about the ‘new politics of the welfare state’. Yet, the question remains why and under what circumstances cutbacks take place in highly developed welfare states despite these formidable political obstacles. This article reviews the literature on the politics of retrenchment, namely on the impact of socio‐economic problem pressure, political parties, political institutions, welfare state structures and ideas. Most authors agree that socio‐economic problems – particularly domestic problems – contribute to an atmosphere of ‘permanent austerity’ which inspires cutbacks. Moreover, according to most scholars, the extent of retrenchment possible depends on the specific institutional configuration of a political system and the path dependence of existing welfare state structures. The debate on the relevance of political parties and ideas, by contrast, is still far from settled. Further unresolved issues include the nature of the dependent variable in retrenchment studies. Also, the exact motives for cutbacks are theoretically still little understood, as are the political mechanisms through which they are realized. I argue that, because of the nature of these persisting issues, the pluralistic dialogue between different methods and approaches – as well as their combination – remains the most promising way forward in the study of welfare state politics.     

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.     

The perceived fair duration of unemployment benefits for older workers. The role of lifetime achievements in the labour market

The welfare state regulates social policies and reallocates scarce resources. For the social legitimacy of the welfare state, it is important that the public supports the principles underlying this reallocation. This article examines the impact of different activities during the life course on public deservingness perceptions of older unemployed people. In a factorial survey experiment conducted among a random sample of individuals drawn from German administrative employment records, we examine the maximum duration of benefit receipt which is perceived as fair for older unemployed persons with different biographies. The results indicate strong public support for a nexus between previous contributions and benefit entitlements. Besides financial contributions to unemployment insurance, parenting and further training are considered to be ‘lifetime achievements’ which justify longer unemployment benefit receipt. We interpret these findings as an expression of a generalised form of reciprocity which guides perceptions of deservingness regarding older unemployed persons.     

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.     

The Middle‐class in the German Welfare State: Beneficial Involvement at Stake?

The working‐class is typically regarded as the driving force of welfare state development. Yet, some argue that the middle‐classes' beneficial involvement in the welfare state is crucial for its financial sustainability and popular legitimacy. Against this backdrop, we investigate how recent welfare state reforms in Germany which affect the status of the middle‐class are viewed and discussed by this group. Germany is a particularly interesting case because its welfare state is seen to be centred on the desires of the middle‐class, especially through its focus on status maintenance and horizontal redistribution over the life‐course. However, the move from status maintenance to minimum income support in unemployment provision and the strengthening of private old age provision challenge this assumption. Thus, we ask how the German middle‐class views the emerging abandonment of the principle of status maintenance and the shift from collective to individual responsibility. Based on qualitative material from focus groups, we find that individual responsibility is generally supported, but that the state is still assigned responsibility for providing basic levels of social security. Furthermore, for those groups seen as less capable of acting individually responsible (e.g. the poor or long‐term unemployed) the ‘inducement’ of – or assistance for – individually responsible behaviour by the state is demanded. Overall, while the principle of ‘individual responsibility’ seems to find some resonance among the middle‐class members interviewed, they still try to balance individual and collective responsibility.     

Youth unemployment and mental health – gender differences and economic stress

This article accounts for a study among 81 unemployed people under 25 years of age and 143 youth trainees in a small municipality in central Sweden. The results show an explicit relationship between unemployment and mental ill health among young people. One unemployed man of four and every second unemployed woman feels that the mental well-being grew worse when they became unemployed. The opposite is experienced by one male youth trainee of four and four female youth trainees of ten, who state that their mental well-being improved when they got into a youth training program after having earlier been unemployed. The results also show that young people with poor finances on the whole have more mental troubles and anxiety about the future than young people with good finances have. The article discusses possible explanations for the patterns with respect to gender and the private financial situations that appear in the results.     

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.     

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.     

The 'Dole or Drudgery' Dilemma: Education, the Work Ethic and Unemployment

Before the recession, Labour ministers claimed that much unemployment in the UK was voluntary. While social policy authors have repeatedly countered such claims by stressing that unemployed people generally possess a strong work ethic and employment commitment, their accounts typically neglect the role that choosiness in job search behaviour plays in deciding individuals' employment status. Fifty in‐depth interviews with both unemployed and employed respondents exposed considerable diversity in attitudes towards ‘dole’ (being unemployed and claiming unemployment benefits) and ‘drudgery’ (doing less attractive jobs). The more educated were more likely to prefer ‘dole’ to ‘drudgery’ (this was also found using National Child Development Study survey data), yet they usually found jobs despite their greater choosiness. Those with very low educational attainment often desperately wanted jobs but could not find them due to their low employability – which might offer an explanation for the often replicated (yet paradoxical) finding that unemployed people generally exhibit a strong work ethic and pro‐employment attitudes and behaviours. Furthermore, the findings indicate that the scope for many Jobseeker's Allowance claimants to increase their net income by undertaking an unattractive job is greater than social policy authors often imply. The question of ‘who must do the least attractive jobs?’ has been neglected by both social policy academics and policy‐makers.     

Unravelling the Politics of Activation Reforms: Exploring the Unusual Israeli Trajectory

Contemporary active labour market (ALM) reforms are pivotal in the reorganization of the welfare state as they challenge and threaten some of the fundamental achievements of labour in capitalist societies: social programmes and entitlements that compensate for unemployment, and governance arrangements in which the social partners share authority and responsibility with the state. Consequently, ALM reforms may give raise to social unrest and political struggle that involves the state (the main proponent of ALM reforms), trade unions and political parties. These conflicts are important in the politicization of reforms, i.e. raising public awareness of and engagement with controversies of welfare state change. In this article, we use a non‐European perspective to ask more generally how distinct historical institutions create separate ‘politicization trajectories’ of ALM reforms, which in turn produce different policy designs and outcomes. Centring on the case of Israel, in which historically ‘abnormal’ class politics fostered indifference to the reform in both trade unions and political parties, we maintain that the preliminary de‐politicization made it possible for bureaucrats to control the reform, leading to an intra‐state conflict between competing agencies over its design and implementation. The usurpation of the reform by the Ministry of Finance made it conspicuously unbalanced, provoking many grievances. Paradoxically, the de‐politicization of the reform advanced its re‐politicization, led by non‐governmental advocacy organizations in civil society. These uncommon political actors in the politics of ALM reforms were able to lead a counter‐coalition, delegitimize the reform, and mobilize politicians to eventually terminate activation     

Foundations of the Workfare State – Reflections on the Political Transformation of the Welfare State in Britain

The British ‘welfare state’ has been transformed. ‘Welfare’ has been replaced by a new ‘workfare’ regime (the ‘Work Programme’) defined by tougher state regulatory practices for those receiving out‐of‐work benefits. US‐style mandatory community work programmes are being revived and expanded. This article, therefore, considers shifting public attitudes to work and welfare in Britain and changing attitudes to working‐age welfare and out‐of‐work benefits in particular. It also considers the extent to which recent transformations of the state may be explained by declines in traditional labourist politics and class‐based solidarity. Thus, we attempt to develop a richer understanding of changing public attitudes towards welfare and the punitive regulatory ‘workfare’ practices engaged by the modern state in the liberal market economy; reflecting on the nature of the relations between ideology, party policies, popular attitudes and their political impact.     

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.     

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.     

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.     

Mental Health and Social Exclusion among Unemployed Youth in Scandinavia. A Comparative Study

Although there has been considerable research on the relationship between mental health problems and unemployment among youth in a national context, there have been few comparative studies involving countries with different cultures and different levels of unemployment. Surveys in the five Nordic countries (Finland, Iceland, Norway, Sweden and Denmark) of nearly 8,000 young unemployed people enable us to study young peoples' experience of unemployment in a comparative perspective. Representative samples of unemployed youth were drawn from the national unemployment registers. In Sweden the sample consisted of 3,998 young people with a response rate of 63%, in Finland 2,386 (response rate 73%), Iceland 2,280 (response rate 60%), Denmark 1,540 (response rate 76%) and Norway 2,000 (response rate 56%). The data were later coupled to data from the unemployment register in the respective countries. The populations were interviewed 6 to 12 months after they were registered as unemployed.     

Social and Material Deprivation among Unemployed Youth in Northern Europe

This article examines deprivation among unemployed young people. It draws on a comparative survey of 8,654 young unemployed in Denmark, Finland, Iceland, Norway, Sweden and Scotland. In spite of an increased knowledge of the relationship between unemployment and poverty,our understanding of deprivation among young unemployed people remains inadequate. How do young people deal with unemployment? Are transitional factors the only explanation for the prevalence of deprivation or should we also consider intergenerational factors? The six countries represent two different welfare strategies, the Nordic universalistic model and the Scottish liberal/ minimalist approaches. The research findings showed diverging tendencies within the Nordic countries. Converging trends between the different systems could also be found, as family support plays the main role in preventing deprivation in all of the countries.     

The digital economy and the future of European welfare states

As a consequence of new technology, labour markets are changing. This article’s central aim is to discuss variations among welfare states in Europe to adjust to changing labour markets. These variations in adjustment suggest that some welfare states are more prepared than others, including their capacity to ensure their sustainable financing. In the years to come, the predicted impact of technological development on labour markets will be huge. Impacts will include stronger “dualization” and new cleavages between “insiders” and “outsiders”. Fewer industrial jobs are to be expected, and service‐sector employment faces a risk of decline due to automation. While the creation of new jobs is likely, it remains to be seen whether these will replace the number of jobs destroyed, leaving the risk that many people whose skills become obsolete will become unemployed in the short as well as the longer term. Furthermore, even if the same number of jobs are eventually created, there will be a period of transition. In the light of this, welfare states will be challenged, not only in how they can finance their activities but also in terms of the threat posed to social cohesion by emerging labour market “winners” and “losers”, with an accompanying higher risk of increasing inequality. The article offers suggestions as to how welfare states may cope with the changes related to the financing of welfare states, and how active labour market policy can be part of the response to help alleviate the expected dramatic changes. Also required is a discussion on the annual average number of hours people will work and how this might be a factor in lower future levels of unemployment.