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Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 1 Flexicurity and transitional labour markets Jean-Claude Barbier CNRS Université Paris1.

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Presentation on theme: "Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 1 Flexicurity and transitional labour markets Jean-Claude Barbier CNRS Université Paris1."— Presentation transcript:

1 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 1 Flexicurity and transitional labour markets Jean-Claude Barbier CNRS Université Paris1 Centre déconomie de la Sorbonne jean-claude.barbier@univ-paris1.fr International seminar Cicero Foundation, 11-12 October, 2007, Paris

2 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 2 Outline I – Transitional labour markets and flexicurity: * concepts * marrying them? II - Actual flexicurity versus putative strategies and the political debate: the Danish and Dutch systems compared III – Where does the gist of flexicurity lie?

3 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 3 TLM and Flexicurity (1 - concepts) TLM original assumptions (Günther Schmid and Peter Auer ): the theory A) full employment is still possible B) transitions (from various statuses on the labour market) are not (equally) secured C) in order for people to take (new) risks, transitions should be secured collectively D) this entails a mix of socialised and market insured risks

4 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 4 TLM and Flexicurity (2 - concepts) Flexicurity, the broad view: A balance between demands for labour/employment flexibility and claims for income/wage security Too often implicit: the balance is not a mechanism nor an automatic trade-off Real actors and real values, real politics

5 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 5 Marrying TLM and flexicurity Not an easy task: TLM theory entails sharing a (strong) normative perspective

6 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 6 Transitional labour markets Günther Schmids four criteria of « good » transitions: Freedom/autonomy Solidarity Effectiveness Efficiency

7 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 7 Specification: labour market/social protection risks and rights Freedom/autonomy Solidarity Effectiveness Efficiency (risks, rights) Balance society/individual = reciprocal engagement High socialisation of risks/services/ redistribution Quality full employment, quality services cost containment, good public management

8 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 8 Marrying TLM and flexicurity? A marriage entails the clarification of certain things Can flexicurity match TLM basic values (principles) ?

9 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 9 Flexicurity = a polysemous notion Flexicurity as a system of social arrangements (complementarities) that produce a balance [1] Flexicurity as a strategy [2] Flexicurity as a political slogan

10 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 10 Flexicurity as a system [1] Yielding a balance Identifying the balance: a sociological task => identifying national cases: Denmark and the Netherlands

11 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 11 Identifying flexicurity: the inductive way - the Netherlands, Wet Flexibiliteit en Sekerheid – 1999 - Denmark with the successive Rasmussen 1 (1993-2001) and Rasmussen 2 (2002-now) governments

12 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 12 Danish and Dutch definitions (1) The canonical academic definition is by T. Wilthagen (and colleagues): « a degree of job, employment, income and combination security that facilitates the labour market careers and biographies of workers with a relatively weak position and allows for enduring and high quality labour market participation and social inclusion, while at the same time providing a degree of numerical (both external and internal), functionaland wage flexibility that allows for labour markets (and individual companies) timely and adequate adjustment to changing conditions in order to maintain and enhance competitiveness and productivity » [quoted in Employment in Europe 2006, p. 77]

13 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 13 Danish and Dutch definitions (2) The canonical definition is by Per Kongshøj Madsen (and colleagues) => golden triangle [relatively loose legislation on employment protection + generous social safety net for the unemployed + high (intensity) spending on ALMP] [quoted from EiE, 2006, p. 78] Peculiarities: other factors outside the triangle play a role: history, macroeconomic policy

14 14 The ambiguous definition of employment protection [Labour Law] (OECD 2004)

15 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 15 An evolving/elusive notion Spotting differences in definitions

16 Flexicurity, Joint employment report, 2007 (EU) Flexicurity should ease the transitions between different stages of working life. The internal and external components of flexicurity should mutually reinforce one another, so that at the same time the modernisation of labour law, investment in training and active labour markets, and the provision of adequate social protection and income security can take place in a context of modern work organisation. Flexicurity should also be conducive to addressing precariousness, reducing segmentation on the labour market, and combating undeclared work. The social partners have an important role to play here.

17 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 17 The EU Commissions recent definition The Commissions background document [20/4/07] Flexible contractual arrangements (both from the perspective of the employer and the employee) through modern labour laws and work organisations; Active Labour Market Policies (ALMP) which effectively help people to cope with rapid change, unemployment spells and transitions to new jobs; Reliable and responsive lifelong learning (LLL) systems to ensure the continual adaptability and employability of workers; Modern Social Security systems which provide adequate income support and facilitate labour market mobility. This includes provisions that help people combine work with private and family responsibilities, such as childcare.

18 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 18 More.. The definition of the expert groups interim report Almost identical + fifth element « it is important to add, as a kind of process variable: supportive and productive social dialogue »

19 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 19 =>>Diversity of definitions Diversity is here to stay in member states The confusion between flexicurity as a system [1] and as a strategy [2] => leads to controversy

20 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 20 A somehow contentious notion: political debate Under an apparent consensus (2007 sample): - F. Müntefering: « ein Symbol » + « ein unechtes Wort » [leichte Lösung, die es aber nicht gibt] - John Monks, ETUC (Sevilla) [au plan européen, cela devient un menu à la carte] - Business Europe, de Buck [from a job preservation mindset into a job creation mindset] - Polish economists [choosing the American model? M.-J Radło, Warsaw] - Etc… Reluctance in certain stakeholder groups

21 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 21 The potential fit between TLM and « flexicurity » Two key elements at stake - strategies for activating social protection [ Enhancing, Introducing systematic links between social protection and employment (labour force participation)] - strategies for fostering the quality of jobs and preventing/decreasing segmentation and inequality

22 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 22 A trade-off? Who trades what with whom? Individual actors: interests, choices Collective actors: interests, choices, etc. Macro-meso-micro dimensions Who benefits from what security (what social protection)? Who benefits from what flexibility (not only employment/labour flexibility?)

23 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 23 Schmidts principles? Freedom/autonomy Solidarity Effectiveness Efficiency Sociological in- depth understanding of the social arrangements

24 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 24 Legitimacy of social arrangements (1) The Danish arrangement Universalistic approach (quality jobs) The weaker are protected Male-female difference is low long duration of unemployment insurance Consistent « welfare reform » => mobility is high, secure and eased

25 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 25 Flexibility, hire and fire activating policies Generous social protection The « Golden triangle » and its social conditions Labour market: the Golden triangle Social con- ditions Norms, values IR system Forlig, 1899, 1933,…

26 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 26 Legitimacy of social arrangements (2) The Dutch arrangement Flexibility of working time Labour sharing/Women labour market participation (lower) Social protection: Equal security for atypical to typical (quality) Various welfare reforms Mobility and various types of flexible employment

27 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 27 Empirical commonalities Social partners Negotiation Systemic consistency Public support = legitimacy Consistent outcome= overall quality employment

28 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 28 The French experience [imitating Denmark 2005-2006] Fragmentation of employment contracts Innovation 2005: a new contract for small firms (Contrat nouvelle embauche – CNE) without employment protection in the first year Innovation 2006: a similar one for the young Inexistent negotiation => protest 2007: new reforms looming

29 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 29 The gist of flexicurity Flexicurity as a portemanteau concept controversial notion and not only easy tradeoffs Systemic consistency Public support linked to negotiation Transitional labour market principles are consistent with the Dutch and the Danish arrangements Not with many others (ex: the French system as we know it)

30 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 30 Appendix

31 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 31 Benefits and employment: some lessons 15-64 OCDE (1999) ER FTEBNoB/noEtotal F 55.524.220.4 100 D 58.922.418.8 100 Dk 69.723.17.2 100 UK 60.718.920.4 100 USA 67.013.719.3 100

32 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 32 Dimensions of social citizenship and the TLM criteria TLM CRITERIA Freedom/autonomy Solidarity Effectiveness Efficiency SOCIAL CITIZENSHIP Freedom of choice. Participation to the formulation of programmes Equality: ages/genders/statuses _____________________ Generosity/duration of benefits; sanctions and conditionality Quality full employment, quality of services

33 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 33 Two recent (unfinished) French reforms Unemployment insurance (PARE) (2001 =>) Freedom/Solidarity Freedom of choice Participation Equality Effectiveness/efficiency Generosity/Sanctions Quality (full employment/services) Resources not sufficient? Large social debate Unequal access Generosity improved/sanctions also Is there an offer of quality services? Underemployment/seg- mentation => Next?

34 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 34 Two recent (unfinished) French reforms RMI reform (on-going) Freedom/Solidarity Freedom of choice Participation Equality Effectiveness/efficiency Generosity/Sanctions Quality (full employment/services Access to services de facto limited Limited social debate Persisting inequalities: the division between insured and « assisted » Unequal access to services and to mainstream unemployment/ sanctions low => next?

35 Barbier CNRS Université Paris 1 Panthéon Sorbonne CES Matisse 35 Activations legacy =>Activation is not entirely new: old activation The Swedish legacy : the 50s: labour market policies => Gøsta Rehns concept Programmes across Europe and the USA: from the 70s workfare (USA, from the early seventies) Insertion (France, from 1975) Aktivering (Denmark, 1992-94) The New Deals in the UK (from 1997)

36 Activation of social protection: two Beveridgean ideal-types LiberalUniversalistic The « problem »(Major): targeted assistance caseloads (low flat rate benefits) (Minor): work ethic: (generous benefits for all) Rules/ValuesSelf-reliance:Versus Dependency Market Balance individual- society Market and state SolutionsIncentives+sanctions underemployment Activation Contract /full employment ProgrammesWelfare to work services+ tax credits Services+updated benefits

37 Activation and existing restructuring reforms: a sketch Restructuring and activation Re-com.Cost-cont.Recal. Problems Participation to the lab. Market/work incentives Control expenditure for working-age New ideas, programmes, adapt to societal demands Dk Flere i Arbejd Efterløn Aktivering PES Updating, work ethics/ +cost UK Tax credits WTW Sickness BenefitsPESRe-com (incentives) + cost Germany Mini- Midi- Jobs/ Kombilohn Early retirementHartz IV, BAA (H III) Fragmentation, low employment creation France PPE, minimum incomes reform Early retirementPES, PARE, insertion Funding reform (social cont.) Fragmentation, low employment creation


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