2. Public policy and European society University of Castellanza Session #2(b) Blocked Societies? The crisis of continental corporatism and the success of the Scandinavian model 11 November 2009

3. Outline l Euroscelorosis? »Europe has less people at work than the USA –lower employment »But some European societies have very high levels of employment l Blocked societies (France, Germany, Italy) »Low employment, inflexible labour markets l Scandinavian success »High employment, flexible labour markets and high social welfare! l France as new model?

4. ‘Euroscelerosis’: Fewer Europeans than Americans at work Employment rate Percentage of potentially active population who have some job. Activity rate: Percentage of potentially active population who are at work or looking for work. Unemployment rate: Percentage of actually active population who are without a job. NB Definitions!

5. Lisbon Declaration l Lisbon targets »70% overall employment »60% women »50% older workers l ‘Arbeit macht frei?’ »But many societies and groups have ‘chosen’ low employment rates, sometimes with high productivity l Economic citizenship »justifies employment »ensures work compatible with social reproduction

6. Employment rates 1997-2006 Source: Employment in Europe 2007

7. Overall participation l Divergence greatest in core age group l Two extremes: »High Scandinavia, low Mediterranean Activity rate: % of populatation 15-64 Activity rate % of pouluation aged 25-54 France62.778.7 Germany64.278.0 Italy47.960.3 Sweden75.885.5 UK68.376.4 EU1560.973.2

8. Employment statuses 2006 Full-time or part-time Home duties Studying without part time work Early retired Prison (Important in USA) Source: Employment in Europe 2007

9. Forms of women’s participation l Countries with high overall participation have very different forms of participation l Deregulated labour markets = ‘bad’ jobs? Part time as % all employment Hours worked: difference- households with and without children Marginal part-time as % all dependent employees France29.49 Germany36.4*-3.318 Italy16.9+28 Sweden33.1+0.16 UK43.9-621 EU1533.5-3.4**14**

10. Three worlds of welfare – and ‘defamiliasation’ l Liberal regime »Market solutions »Deregulated labour market- »Immigrant caring labour »Part-time and temporary work for women l Social democratic »Extensive care services: »Good low skill employment »Enable women to leave home l Conservative/ corporatist »Subsidiarity so family important »Insurance based benefits »Priority of full-time work l Mediterannean (?) »As conservative but incomplete coverage Which countries? UK and Ireland Scandinavia France and Germany Italy, Spain, Greece… New member states? Changes?

13. Employment Protection Legislation – laws that make it difficult and/or expensive for employers to dismiss employees

14. Blocked societies l Insider/outsider labour markets »Low employment rates »High unemployment »High youth unemployment l Ineffective third level education »Disconnection from labour market (low returns to education) »Long duration »Low research l And in Italy: »Low female employment »Corruption

15. A new France? Nicholas SarkozySégolène Royal

16. Scandinavian flexicurity Flexicurity Activation Retraining and life-long learning Protect the worker, not the job Low Employment Protection Results High employment rate High job mobility (‘flexibility’) and effective job search Firms can innovate without employment problems BUT needs high trust and is expensive!

17. Scandinavian successes l Family and social services –Extensive good quality services (especially childcare) enable women to participate in employment by moving ‘women’s jobs’ outside the home –Social services provide good quality caring jobs (largely for women) –Contributes to relatively high birth rate and egalitarian household division of labour –BUT public sector/private sector gender divide l High and continuing education –High overall levels of education (no US or UK ‘tail’) –The basis for innovative enterprises through links to commercial R&D –Creates flexible workforce

18. New strength of ‘Continental’ ‘conservative regimes Extensive automatic stabilisers (welfare) Acceptance of state regulation and intervention A continental solution?