Unemployment and Health in Sweden: Public Issues and Private Troubles

The unemployment rate for a country seems to reflect unemployment policies rather than economic conditions. Variations in employment rates for selected Western countries are presented as a background for a discussion of unemployment and its individual and societal consequences in Sweden. Unemployment is both a private trouble—where individuals see the possibility of controlling their own lives diminishing, which leads to increased risk for psychological and physiological stress—and a public issue, for increased unemployment is associated with societal vulnerability, social polarization, and the breakdown of community ties, which lead to increased societal stress and increased mortality on the national and the community levels. However, for the large majority of workers, the Swedish welfare system buffers first against unemployment, and second against its negative economic effects. Less than 2% of the workforce are exposed to unemployment, and a minority of the unemployed seem negatively affected by the unemployment experience. An empirical longitudinal study of unemployed blue-collar workers and two employed control groups indicated that a coping orientation involving an attitude of mastery or perceived control buffered against psychological and physiological stress reactions.     

Unemployment insurance in Bulgaria and other East European countries: The transition to a market economy

Unemployment places those it affects in a situation of dependency on unemployment benefits. The regulation of that dependency and the measures necessary to avert it, in Bulgaria (and also in other East European countries) during the period of transition to a market economy, forms the subject of labour and social insurance legislation relating to unemployment and introduced on a temporary basis. Unemployment insurance benefits (unemployment benefits in cash, unemployment assistance, social assistance) are provided for limited periods fixed in the light of the nature of the benefit, the causes of unemployment, the number of years of service, age, gender and other factors. The degree of dependency of unemployed persons on such benefits is also determined by the level of those benefits. The principal categories of legal instruments by which that dependency can be averted or reduced are (1) contributions by the State to the establishment of labour law relationships by providing information to unemployed persons on job vacancies, vocational training and retraining measures, job creation measures and placement; (2) incentives to employers to maintain existing jobs and to create new ones (credits, exemption from interest payments, etc.).     

Income Protection Through Direct Employment Programmes: Recent Concepts and Examples from Latin America

The risk of unemployment in Latin America is high. Unemployment insurance exists only in a few countries; coverage is small, and virtually non-existent in the informal economy. For this reason social protection policies for unemployed workers, defined in the broad sense, have addressed and strengthened the role of direct employment programmes and assistance through cash subsidies. This article describes the main features (financing and administration) of direct employment programmes in the region and their objectives, and evaluates their functioning in terms of targets and coverage, costs and impact. Available studies show that the net direct impact of such programmes on unemployment rates and on beneficiaries' incomes is in most cases relatively low. Nevertheless, in some cases they have helped to lower levels of unemployment and poverty, and have indirect positive effects that are more difficult to measure, such as incentives to economic recovery resulting from the chain effect on consumption of beneficiaries buying goods. For this reason direct employment programmes remain a fully valid mechanism, especially in social emergencies.     

Keep out of the reach of children: parental unemployment and children's accident risks in Sweden 1991–1993

In the early 1990s, unemployment levels increased dramatically in Sweden. Although the effects of unemployment on unemployed individuals are well-documented, research on parental unemployment and children has been neglected. The aim of the present study is to explore the relationship between parental unemployment and children's accident risks in Sweden for the period 1991–1993. Two independent samples are used: the Swedish Level of Living Survey 1991 (original sample 6,733 individuals) and the Swedish Longitudinal Study among Unemployed 1992–1993 (original sample 792). The samples were taken during periods of both low and high unemployment. The results indicate that parental unemployment is associated with increased accident risks among children in 1991, 1992 and 1993. The increased risks do not seem to be due to the effects of adverse selection into unemployment on parental well-being, financial difficulties or alcohol consumption. It is also suggested that low parental well-being is of causal significance within the unemployed group.     

Social Security in Rwanda: Overcoming Indifference

The current social security system in Rwanda, set up in 1962, has until recently been viewed with indifference by most Rwandans. This is because employees in the formal sense, who are the ones concerned by the pension and occupational risk branches, represent only a tiny minority of the population, attempts to provide medical cover for the population are still in their infancy, and in a context where unemployment is the rule and work the exception, the risk of unemployment is uninsurable. Faced with this situation the first challenge was to increase people's awareness of the problem by launching a debate in which social security was seen as part of efforts to combat poverty and underdevelopment. The greater awareness which this produced has enabled us to introduce a plan which we hope, on the basis of the first results, will lead to better things in future. Fundamental changes have just been made to the pension scheme, the management institution has been restructured and modernized, and efforts in the field of healthcare are producing their first fruits. Perhaps now, at long last, after years of indifference and inertia, a new day is dawning for social security in Rwanda!     

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.     

How unemployment duration affects social assistance receipt: evidence from Finland

This article reports on a study of the impact of unemployment duration on the probability of becoming a social assistance recipient and on the time spent on social assistance. The data are taken from a local Finnish labour market consisting of the cohort of unemployed people at a given date (n = 2,274). The data are linked to information about the number of months recipients received social assistance during the subsequent year. Count data regression models of the hurdle type are estimated. The results of the analysis suggest that the impact of unemployment duration on the probability of becoming a social assistance recipient is explained to a large extent by changes in the distribution of types of unemployment benefits between people with different lengths of time spent in unemployment. Unemployment assistance recipients are more likely to become social assistance recipients and to spend longer periods on social assistance than are recipients of unemployment insurance because the unemployment benefits for the latter are higher. Among social assistance recipients, time spent on the transfer increases with unemployment duration only for those who are in frequent need of assistance.     

Social security for the twenty-first century

Social security schemes are accused of undermining both competitiveness and employment, because of the burden of contributions, and weakening economic vitality through their disincentive effects on work and levels of saving. Yet at the same time they are called upon to meet new social needs arising from family instability and changes in the labour market – growing unemployment and reduced job security, widening pay differentials and a decline in the position of self-employed workers – trends which coincide with the globalization of markets. This article postulates the need for improved redistribution (without making changes in social security coverage) in order to achieve a balance between occupational and national solidarity which favours the latter, since stable and full-time employment for all can no longer be assured.     

Constructing Unemployment: Britain and France in Historical Perspective

Unemployment emerged as a specific social issue in the late‐19th century, but the nature of the threat it posed and the governing instruments available to address it varied widely. Using Britain and France as strongly contrasting cases, this article demonstrates the variable and historically contingent constructions of unemployment as a problem, and demonstrates how policy to address it was developed using administrative agencies that embodied specific, normative visions of how society and employment should operate. The different governing trajectories through which the issue was tackled is analyzed in terms of the context within which the problem of unemployment originally emerged. The article demonstrates the socio‐political nature of unemployment's construction and, with reference to recent labour market change, questions its utility as a means of assessing economic or social well‐being.     

The challenge of youth unemployment

This article was prepared as a contribution to the ILO's Action Programme on Youth Unemployment. It presents an overview of the youth unemployment problem and youth employment policy principally from a European perspective, although it is hoped that much of the comment and analysis is relevant to afar broader range of countries. In the first section, which considers the nature and causes of youth unemployment, it is shown that its basic cause is aggregate demand rather than high youth wages or the size of the youth cohort, and suggests that a successful strategy for dealing with the problem must take this into account. In the second section, dealing principally with the examples of Germany and the United Kingdom, a number of factors are identified which influence the effectiveness of youth employment policy. In particular, it is found that precise targeting of programmes and the involvement of employers' and workers' organizations, as well as government, in the design and implementation of policy are both important determinants of an effective policy. A third section attempts to set the analysis in a more general context.     

Single Parent Families and Social Policies in Australia 1974–1982

Of the two major sources of income support for single parent families, social security transfers and earned income, there has been an increase in the proportion of families dependent on social security in the period 1974–1982, a period of recession and high unemployment. Over this period the value of income support for supporting parents has declined because of the non-indexation of the child components of pensions and benefits. This article identifies disincentives to the parents' labour force participation: lack of post-school qualifications, shortage of jobs, scarcity of affordable child care and the low income retention rates imposed upon the extra earnings of pensioners and beneficiaries.     

Pension Provision for Specific Risk Groups: The Japanese Case

The growing variety of possibilities in one life course raises coverage, fairness and social adequacy questions about existing public pension provision. This paper examines problems of drop-out, full-time housewives, carers, divorced or remarried people and those engaged in atypical work in Japan. A possible solution will be a universal basic pension financed by a consumption-based tax. It is also advisable to expand social security coverage of the earnings-related pension to any earners irrespective of their earnings amount, if any. In implementing this provision, an integrated single social security pension number for each person is required, and this has already been introduced in Japan. The 1999 government reform plan for pensions is also mentioned.     

Back to Work after Incapacity Benefit: Differences between Ethnic Minority and Native Dutch Workers

Contemporary pleas for an activating welfare state and social security system emphasize that getting benefit claimants back to work is more important than providing income compensation for social risks connected with unemployment or illness. The Dutch system of incapacity benefits, however, is far removed from this normative ideal of a proactive social security system. Resumption of work after a spell of incapacity benefit is the exception rather than the rule. This article examines possible ethnic differences in resumption of work following incapacity benefit. We use a unique register data file from Statistics Netherlands that contains information about all incapacity benefit claimants in the Netherlands in 1999. In the analysis we follow these benefit claimants for three years and examine what their labour market position was in 2002. We find that resumption of work after incapacity benefit is even more the exception for migrant workers with a Turkish or Moroccan ethnic background. Contrary to our assumption, this difference from native Dutch workers cannot be explained by unfavourable personal characteristics of Turkish or Moroccan benefit claimants – their personal characteristics (gender, age, low educational level) appear to be rather favourable for resumption of work. In the current literature, these differences in outcomes between ethnic groups are often attributed to certain ‘ethnic‐specific’ or cultural factors. This article argues that we should be careful of explaining different outcomes between ethnic groups by (alleged) cultural phenomena. There are other explanations possible such as differences in work motivation, lack of ‘transition facilities’ in companies and differential treatment by employers or social security officials.     

Young and Unemployed

Unemployment can pose particular problems for school leavers and other young people. Some English studies on the effects of unemployment are reviewed, and some of the causes and effects of unemployment among young people in Australia are then discussed. Some suggestions are made for areas in which further research could be carried out.     

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.     

Testing old theories in new surroundings: The timing of first social security laws in Africa

This article examines the timing of the introduction of four major social security programmes — work accident insurance, sickness benefits, pensions, and family allowances — in 43 African countries. Further, it explores whether legislative structure, dominant religion or the colonial past of the country is of importance when we control for year of independence, prosperity, degree of democracy, government stability, industrialization and the size and ethnic homogeneity of the population. On the basis of Cox hazard rate modelling it is concluded that industrialized, homogeneous and rather populous countries that were under French rule tend to be pioneers in African social security legislation.     

Coping with long–term unemployment: economic security, labour market integration and well–being. Results from a Danish panel study, 1994–1999

On the basis of a Danish panel study of the long–term unemployed 1994–1999, the article challenges core premises underlying labour market reforms, assigning too high a priority to work and work incentives, and too little priority to social protection. Economic hardship has become widespread among long–term unemployed even in Denmark, and this is a more serious threat against well–being than unemployment as such. Generous social security, denounced as 'passive support', enables the unemployed to cope with their situation, and there are no signs of any 'dependency culture'. Incentives in terms of economic hardship may stimulate active job seeking but the panel study reveals that it has no positive effect on subsequent labour market integration.     

Unemployment and Mental Health: Some British Studies

Within the context of the British labor market, 11 investigations into the mental health impact of unemployment are described. These reveal significant decrements for people of all ages as a result of moving into unemployment, and for middle-aged men additional effects of continuing joblessness. Research into factors mediating the harmful impact of unemployment has covered time since job loss, employment commitment, social relationships, gender, ethnic group membership, social class, local unemployment rate, and personal vulnerability. Findings with respect to each are summarized, and a model of influential environmental characteristics is introduced. Additional British investigations are cited throughout the paper.     

Social security and dependence

There is increasing concern that social security creates dependence. The contingencies of most interest are unemployment, lone parenthood and disability. The relationships between each of these contingencies and the level of social security benefits are analysed cross-nationally; in no case is there a systematic relationship. The paper then examines other factors that determine dependence on social security.     

Protecting the Old in a Young Economy: Old Age Insurance in the West Bank and Gaza Strip

Taking the West Bank and Gaza Strip as a reference point, this paper looks at social protection in developing economies, which are beset by economic stagnation, widespread poverty and unemployment. If the main breadwinner dies, is unable to work or is an older person, these factors are prime causes of absolute poverty. This is hardly surprising, since private and public systems of social security are totally inadequate in this area in particular. Current thinking on social security suggests that what is needed is the rapid introduction of a comprehensive system of retirement provision, comprising a mandatory capital-funded insurance component, with defined contributions, administered on a decentralized basis; and a state-administered pay-as-you-go basic insurance component with lump-sum transfers to safeguard the poorest. A system of this kind works to prevent poverty in old age by redistributing funds from some individuals to others and ensuring an income for life, and it represents a compromise between a fair return on what people have contributed and a fair distribution over society as a whole. It is thus a major force for stability in society.