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Bakker, Vincent & Olaf van Vliet (2022): Social Investment, Employment and Policy and Institutional Complementarities: A Comparative Analysis across 26 OECD Countries. In: Journal of Social Policy, Jg. 51, H. 4, S. 728-750. DOI:10.1017/S0047279421000386

Abstract

"Raising employment has been at the heart of EU strategies for over twenty years. Social investment, by now a widely debated topic in the comparative welfare state literature, has been suggested as a way to pursue this. However, there are only a couple of systematic comparative analyses that focus on the employment outcomes associated with social investment. Analyses of the interdependence of these policies with regard to their outcomes are even more scarce. We empirically analyse the extent to which variation in employment rates within 26 OECD countries over the period 1990-2010 can be explained by effort on five social investment policies. We additionally explore the role of policy and institutional complementarities. Using time-series cross-section analyses we find robust evidence for a positive association between effort on ALMPs and employment rates. For other policies we obtain mixed results. ALMPs are the only policies for which we observe signs of policy interdependence, which point at diminishing marginal returns. Additionally, our analysis demonstrates that the interdependence of social investment policies varies across welfare state regimes. Together, this indicates that the employment outcomes of social investment policies are also contingent on the broader framework of welfare state policies and institutions." (Author's abstract, IAB-Doku) ((en))

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Davern, Eamonn (2022): European Network of Public Employment Services: PES support to recovery. Thematic paper. Luxembourg: Publications Office of the European Union, 22 S. DOI:10.2767/847911

Abstract

"This paper provides an overview of the key questions and issues for Public Employment Services in determining how best to assist labour market recovery from the COVID-19 pandemic. It draws upon existing promising practices and academic research, as well as the discussions held in a Thematic Review Workshop in the Network on 9-10 November 2021. Member States have introduced a wide range of measures to mitigate the negative impact of COVID-19 on employment. Despite these initiatives the longer-term challenges from structural labor market changes remain. The report highlights that to further succeed, PES need to learn from emergency measures applied during the crisis, identifying those which could be adopted for permanent use, consistently reviewing their institutional strength and corporate resilience. This will require agility with rapid responses to emerging trends, sufficient capacity, appropriate tools, and required competencies to support unemployed people through profound labour market changes. Liaison with partners will become increasingly important and need to be regularly reviewed to identify where new partnerships are needed. PES will need to support improved labor market function through promoting employment in growing sectors of the economy, particularly digital and green jobs, facilitating occupational and geographical mobility, including through training and upskilling, and supporting the agenda for longer working lives." (Author's abstract, IAB-Doku) ((en))

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Guschanski, Alexander & Özlem Onaran (2022): The decline in the wage share: falling bargaining power of labour or technological progress? Industry-level evidence from the OECD. In: Socio-economic review, Jg. 20, H. 3, S. 1091-1124. DOI:10.1093/ser/mwaa031

Abstract

"We investigate whether the downward trend in the wage share is driven by technological change or a decline in labour’s bargaining power. We present an econometric analysis using industry-level data for 14 Organisation for Economic Co-operation and Development (OECD) countries for the 1970–2014 period and test whether the determinants of the wage share differ between manufacturing and service industries, between workers of different skill groups and across countries with different bargaining regimes. Our findings suggest that the wage share declined due to a fall in labour’s bargaining power driven by offshoring to developing countries and changes in labour market institutions such as union density, social government expenditure and minimum wages. In contrast, the effect of technological change is not robust. While we find evidence for a negative effect on medium-skilled workers, our results cast doubt on the hypothesis of skill-biased technological change." (Author's abstract, IAB-Doku) ((en))

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Nieuwenhuis, Rense (2022): No activation without reconciliation? The interplay between ALMP and ECEC in relation to women employment unemployment and inactivity in 30 OECD countries 1985-2018. (Working papers / Institute for Evaluation of Labour Market and Education Policy 2022,04), Uppsala, 36 S.

Abstract

"Comparative welfare state research has mostly examined the outcomes of active labour market policies and work-family reconciliation policies separately. As a result, potential complementarities between these policy areas have received scant attention empirically. Using macro-level data, this study answers the question to what extent, and in which way, governments' efforts in active labour market policies (ALMP) and in early childhood education and care (ECEC) services are correlated with women's employment rates, women's unemployment and inactivity rates in 30 OECD countries from 1985 to 2018. The article theorizes about how the various policies that constitute a welfare state relate to each other, distinguishing between pluralism, complementarity and substitutability. I interpret the empirical findings as being consistent with welfare pluralism, in the sense that ALMP and ECEC policies work together in improving women's employment rates in slightly different ways: ALMP is associated with low female unemployment rates, whereas ECEC also is associated with lower inactivity rates for women. There was, however, more support for the notion of substitution rather than complementarity: the marginal benefits associated with an increase in either ALMP or ECEC were smaller in the context of large investments in the other policy. In other words, the highest rates of women's employment, and the lowest rates of unemployment and inactivity, are found in countries with large investments in both ALMP and ECEC, but such higher investments are associated with diminishing returns." (Author's abstract, IAB-Doku) ((en))

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Nieuwenhuis, Rense (2022): No activation without reconciliation? The interplay between ALMP and ECEC in relation to women employment unemployment and inactivity in 30 OECD countries 1985-2018. In: Social Policy and Administration, Jg. 56, H. 5, S. 808-826. DOI:10.1111/spol.12806

Abstract

"Comparative welfare state research as examined the outcomes of active labour market policies (ALMP) and work-family reconciliation policies by and large been separately. As a result, potential complementarities between these policy areas have received scant attention empirically. Using macro-level data, this study answers the question to what extent, and in which way, governments' efforts in ALMP and in early childhood education and care (ECEC) services are complementary to each other in promoting women's employment rates and reducing women's unemployment and inactivity rates in 30 OECD countries from 1985 to 2018. The article theorises about how the various policies that constitute a welfare state relate to each other, distinguishing between pluralism, complementarity and substitutability. These findings provide support for the notion of welfare pluralism, in the sense that ALMP and ECEC policies work together in improving women's employment rates in slightly different ways: ALMP achieve this through reducing women's unemployment rates, whereas ECEC also achieve lower inactivity rates for women. There was, however, more support for the notion of substitution rather than complementarity: the marginal benefits associated with an increase in either ALMP or ECEC were smaller in the context of large investments in the other policy. In other words, the highest rates of women's employment, and the lowest rates of unemployment and inactivity, are found in countries with large investments in both ALMP and ECEC, but such higher investments are associated with diminishing returns." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Abstract

"Learning opportunities that allow adults to up- and re-skill are vital components for economic growth and social equality. The Council Recommendation of 19 December 2016 on Upskilling Pathways (2016/C 484/01) aims to ensure that everyone in society has a comprehensive set of basic skills, knowledge, and competences to achieve their full potential, play an active part in society and progress on the labour market. The Recommendation sets out a three-step approach to offering low-skilled adults access to upskilling pathways, through a skills assessment, a tailored and flexible learning offer, and validation and recognition of skills and competences. This approach is underpinned by outreach, guidance and support measures for learners, as well as coordination between relevant actors in education, training, employment, and social policy. This study contributes to the evaluation staff working document of the European Commission. It outlines the change that has occurred between 2016 and 2021 with regards to upskilling pathways in Member States in response to the Recommendation. It then proceeds to assess the extent to which this response has been effective, efficient, relevant, in coherence with other EU and national policies and programmes and has delivered EU added value. On the basis of these findings, it draws key lessons learned." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2022): Employment and Social Developments in Europe - Quarterly Review October 2022. (Employment and social developments in Europe : quarterly review), Luxembourg, 23 S.

Abstract

"The October 2022 edition of the Employment and Social Developments Quarterly Review presents and discusses data that was mostly collected in the first half of 2022 and made available in the weeks ahead of publication of this review. The Russian unprovoked invasion of Ukraine that started on 24 February 2022 has caused immense human suffering, significantly disrupted global supply chains, and led to a dramatic rise of energy prices and an increase in inflation. This has caused an increase in the uncertainty for economic operators, worsening their expectations for future economic growth and employment. The thematic section of this review analyses the impact of rising prices on households in the EU." (Author's abstract, IAB-Doku) ((en))

Abstract

"The European Union Programme for Employment and Social Innovation (EaSI) provides financial support to promote a high level of quality and sustainable employment, guarantee adequate and decent social protection, combat social exclusion and poverty, and improve working conditions across the EU. With a view to the regular monitoring of the programme, the EaSI Regulation foresees that ‘the Commission shall draw up an initial qualitative and quantitative monitoring reports covering consecutive two-year periods. This is the fourth EaSI Performance Monitoring Report presenting the results achieved by the programme in 2019-2020. It focuses on the products (outputs) delivered by the programme and the benefits they brought in 2019-2020. Over the period 2019 and 2020, the Commission committed more than EUR 255 million towards implementation of the programme’s activities." (Author's abstract, IAB-Doku) ((en))

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Fortuna, Natércia & António Neto (2021): The impact of labour market institutions on income inequality: evidence from OECD countries. In: Applied Economics Letters, Jg. 28, H. 13, S. 1110-1113. DOI:10.1080/13504851.2020.1803474

Abstract

"Using data from 35 OECD countries for the 1993–2017 period, this paper shows that stronger Labour Market Institutions (LMI), such as trade unions and bargaining coverage, contribute to a decrease in income inequality measured by the Gini coefficient. Additionally, there seems to be a positive interaction effect between unions and bargaining coverage. The marginal impact of trade unions (bargaining coverage) is enhanced by the presence of high levels of bargaining coverage (trade unions). Notwithstanding, this impact seems to be higher for bargaining coverage. On average, an increase in unions’ density (bargaining coverage) by 1% leads to an estimated decrease in inequality by 0.30% (0.35%), ceteris paribus." (Author's abstract, IAB-Doku) ((en))

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Fredriksson, Daniel (2021): Reducing unemployment? Examining the interplay between active labour market policies. In: Social Policy and Administration, Jg. 55, H. 1, S. 1-17. DOI:10.1111/spol.12606

Abstract

"Active labour market policies (ALMP) are important tools that welfare states utilize to influence the labour market. This study analyses the macroeconomic effects of different types of ALMP spending on aggregate unemployment rates, and especially if there is evidence of interdependencies between policies. The types of policies scrutinized are public employment services (PES), training programs, public job creation and subsidized employment, where the PES is singled out as a crucial factor that moderates the effects of other types of labour market programs. The study examines 19 welfare states between 1985 and 2013, using error correction modelling to separate between short- and long-term effects. The results indicate that PES, training and subsidized employment reduce unemployment in the short-run, whereas PES and wage subsidies are associated with reduced unemployment when considering long-term effects. However, PES is found to have indirect effects on other policy types and increased spending on PES is shown to reinforce long-term effects of training programs." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Guillemette, Yvan & David Turner (2021): The long game: Fiscal outlooks to 2060 underline need for structural reform. (OECD economic policy papers 29), Paris, 44 S. DOI:10.1787/a112307e-en

Abstract

"This paper updates the long-term scenarios to 2060 last published in July 2018, with a special focus on fiscal sustainability and risks. In a baseline economic and fiscal scenario, trend real GDP growth for the OECD + G20 area declines from around 3% post-COVID to 1½ per cent in 2060, mainly due to a deceleration of large emerging-market economies. Meanwhile, secular trends such as population ageing and the rising relative price of services will keep adding pressure on government budgets. Without policy changes, maintaining current public service standards and benefits while keeping public debt ratios stable at current levels would increase fiscal pressure in the median OECD country by nearly 8 percentage points of GDP between 2021 and 2060, and much more in some countries. Policy scenarios show that reforms to labour market and retirement policies could help boost living standards and alleviate future fiscal pressures. An ambitious reform package combining labour market reforms to raise employment rates with reforms to eliminate early retirement pathways and keep effective retirement ages rising by two thirds of future gains in life expectancy could halve the projected increase in fiscal pressure in the median country, even after taking into account future spending pressures associated with ageing." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2021): Labor market policy - Expenditure and participants: Data 2019. (Labur market policy - expenditure and participants), Brüssel, 208 S. DOI:10.2767/995509

Abstract

"This publication presents statistics on labor market policy (LMP) interventions implemented by EU Member States, Norway and the United Kingdom in 2019, together with time-series for key variables covering the period 2007-2019. The paper is divided in four chapters. Chapter 1 is introductory. Chapters 2 and 3 deal respectively with data on expenditure and participants in LMP interventions and include tables of indicators used for monitoring the EU Employment Guidelines. Chapter 4 includes tables of external and reference data that help to put the LMP data into context." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2021): Joint Employment Report 2021. As adopted by the Council on 9 March 2021. (Joint employment report), Brüssel, 141 S.

Abstract

"The Joint Employment Report by the European Commission and the Council is mandated by Article 148 of the Treaty on the Functioning of the European Union. The European Commission’s proposal for this report is part of the Autumn package. The Joint Employment Report provides an annual overview of key employment and social developments in the European Union as well as Member States’ reform actions, in line with the Guidelines for the Employment Policies of the Member States. The report follows the structure of the Guidelines: boosting the demand for labor (Guideline 5), enhancing labor supply and improving access to employment, skills and competences (Guideline 6), enhancing the functioning of labor markets and the effectiveness of social dialogue (Guideline 7), and promoting equal opportunities for all, fostering social inclusion and fighting poverty (Guideline 8). In addition, the Joint Employment Report monitors Member States’ performance in relation to the Social Scoreboard set up in the context of the European Pillar of Social Rights. The Pillar was proclaimed jointly by the European Parliament, the Council and the Commission on 17 November 2017. It identifies principles and rights in three areas: i) equal opportunities and access to the labor market, ii) fair working conditions, and iii) social protection and inclusion. Monitoring of progress in these areas is underpinned by a detailed analysis of the Social Scoreboard accompanying the Pillar. The Joint Employment Report is structured as follows: an introductory chapter (Chapter 1) reports on main labor market and social trends in the European Union, to set the scene. Chapter 2 presents the main results from the analysis of the social scoreboard associated with the European Pillar of Social Rights. Chapter 3 provides a detailed cross-country description of key indicators (including from the social scoreboard), looking at Member States’ performance, challenges and policies implemented to address the Guidelines for Employment Policies." (Author's abstract, IAB-Doku) ((en))

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Ductor, Lorenzo & Daryna Grechyna (2020): Determinants of ins and outs of unemployment. In: Applied Economics Letters, Jg. 27, H. 11, S. 892-898. DOI:10.1080/13504851.2019.1646858

Abstract

"We estimate the robust determinants of the inflow rate into and outflow rate from unemployment in a sample of OECD countries, using Bayesian model averaging approach to overcome model uncertainty. We find that the main determinant of outflows from unemployment is expenditure on passive labour market policies, while the main determinant of inflows into the unemployment is the duration of benefit entitlement." (Author's abstract, IAB-Doku) ((en))

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Jara, H. Xavier & Agathe Simon (2020): The Income Protection Role of an EMU-wide Unemployment Insurance System: the Case of Atypical Workers. (EUROMOD working paper 2021,06), Cambridge, 48 S.

Abstract

"This paper evaluates the potential of a common unemployment insurance system for the Economic and Monetary Union (EMU-UI) to improve income protection of atypical workers, namely those in part-time and temporary contracts. We use EUROMOD, the European tax-benefit microsimulation model, to simulate entitlements to national and EMU-UI and assess their effects on the household disposable income of atypical workers in the event of unemployment. Our results show that there are sizable gaps in the coverage of national UI schemes between countries, with atypical workers having particularly low coverage rates. The introduction of an EMU-UI would reduce coverage gaps and increase net replacement rates, especially for atypical workers, and would protect a large share of the workforce against the risk of poverty. Extending eligibility for the EMU-UI to the self-employed would further improve income protection, reducing their risk of falling into poverty in the event of unemployment." (Author's abstract, IAB-Doku) ((en))

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Mašidlauskaitė, Rūta (2020): European Network of Public Employment Services: Ad hoc module to the 2018 PES capacity questionnaire. Survey-based Report. Luxembourg: Publications Office of the European Union, 45 S. DOI:10.2767/738258

Abstract

"Public Employment Services play a key role in the sustainable activation of disadvantaged groups, including the long-term unemployed. The Recommendation on the integration of the LTU into the labour market explicitly asked the European Network of Public Employment Services (PES Network) to contribute to the monitoring of its implementation. In response, in 2016, the PES Network designed and adopted a set of minimum, intermediate and advanced quality standards for implementing a SPOC and a JIA. These standards were used by the Employment Committee (EMCO) review on long-term unemployment in December 2016 and it is very likely that the LTU will continue to feature in the upcoming EMCO review in October 2018. Furthermore, as a part of the Benchlearning project, the PES Network amended a qualitative performance enabler to integrate data on the LTU into its qualitative assessments in 2018. This report summarises the recent developments in PES concerning the integration of the long-term unemployed back into the labour market, and it provides an overview of the effects of the Recommendation reported by PES. The report also provides information on common challenges faced by PES when implementing the Recommendation." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2020): Labor market policy - Expenditure and participants: Data 2018. (Labor market policy - expenditure and participants), Brüssel, 203 S. DOI:10.2767/600364

Abstract

"This publication presents statistics on labor market policy (LMP) interventions implemented by EU Member States and Norway in 2018, together with time-series for key variables covering the period 2006-2018. The paper is divided in four chapters. Chapter 1 is introductory. Chapters 2 and 3 deal respectively with data on expenditure and participants in LMP interventions and include tables of indicators used for monitoring the EU Employment Guidelines. Chapter 4 includes tables of external and reference data that help to put the LMP data into context." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2020): Joint Employment Report 2020. As adopted by the EPSCO Council on 8 April 2020. (Joint employment report), Brüssel, 133 S.

Abstract

"The Joint Employment Report (JER) by the European Commission and the Council is mandated by Article 148 of the Treaty on the Functioning of the European Union (TFEU). The initial proposal for this report by the European Commission is part of the Autumn package, which includes the Annual Sustainable Growth Strategy launching the European Semester cycle. The Joint Employment Report provides an annual overview of key employment and social developments in Europe as well as Member States' reform actions, in line with the Guidelines for the Employment Policies of the Member States. The reporting on these reforms follows the structure of the Guidelines: boosting demand for labor (Guideline 5), enhancing labour supply and improving access to employment, skills and competences (Guideline 6), enhancing the functioning of labour markets and the effectiveness of social dialogue (Guideline 7), and promoting equal opportunities for all, fostering social inclusion and combatting poverty (Guideline 8). In addition, the Joint Employment Report monitors Member States' performance in relation to the Social Scoreboard set up in the context of the European Pillar of Social Rights. The Pillar was proclaimed jointly by the European Parliament, the Council and the Commission on 17 November 2017. It identifies principles and rights in three areas: i) equal opportunities and access to the labor market, ii) fair working conditions, and iii) social protection and inclusion. Monitoring of progress in these areas is underpinned by a detailed analysis of the Social Scoreboard accompanying the Pillar. The Joint Employment Report is structured as follows: an introductory chapter (Chapter 1) reports on main labor market and social trends in the European Union, to set the scene. Chapter 2 presents the main results from the analysis of the social scoreboard associated with the European Pillar of Social Rights. Chapter 3 provides a detailed cross-country description of key indicators (including from the social scoreboard) and policies implemented by Member States to address the Guidelines for Employment Policies." (Author's abstract, IAB-Doku) ((en))

Abstract

"The European Union Program for Employment and Social Innovation (EaSI) provides financial support to promote a high level of quality and sustainable employment, guarantee adequate and decent social protection, combat social exclusion and poverty, and improve working conditions across the EU. With a view to the regular monitoring of the program, the EaSI Regulation foresees that ‘the Commission shall draw up initial qualitative and quantitative monitoring reports covering consecutive two-year periods.’ This is the third EaSI Performance Monitoring Report presenting the results achieved by the program in 2017-2018. It focuses on the products (outputs) delivered by the program and the benefits they brought in 2017-2018. In 2017 and 2018, the Commission committed more than EUR 257 million for the implementation of all the program’s activities. The implementation of EaSI Work Programmes in 2017 and 2018 was well in line with the EaSI Regulation. The following positive developments were noted in 2017-2018: EaSI-funded policy evidence remained sound and highly useful in the view of the stakeholders. EaSI-funded events continued providing much-appreciated platforms for effective and inclusive information sharing, mutual learning and dialogue in relevant policy fields. EU-funded support for social policy innovations gained more visibility; The use of the EURES Job Mobility Portal was rather uneven from one year to another, but the number of registered users increased. EURES remained a catalyst for effective recruitment and placing of workers, organized through cross-border partnerships and targeted mobility schemes. 2017-2018 marked a strong period for the Microfinance and Social Entrepreneurship axis. Microfinance support continued to provide real added value. In 2018, 27 contracts worth EUR 57.4 million were signed with microfinance intermediaries, which resulted in 47 684 microloans worth EUR 129.3 million (the leverage of 4.4 was achieved). EaSI support for social enterprises has taken momentum. In total, 949 social enterprises had received funding through the EaSI Social Entrepreneurship Window by the end of 2018." (Author's abstract, IAB-Doku) ((en))

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Bown, Chad P. & Caroline Freund (2019): Active labor market policies. Lessons from other countries for the United States. (Working paper / Peterson Institute for International Economics 2019-02), Washington, DC, 12 S.

Abstract

"US labor force participation has been weak in recent decades, especially during the recovery of the financial crisis of 2007 - 09. This paper examines several programs that governments in other advanced industrial countries have established to help jobless workers continue to seek employment, not drop out of the labor force, and ultimately find jobs. These programs more actively support out-of-work citizens by facilitating matches between workers and firms, helping workers in their job searches, and sometimes creating jobs when none are available in the private sector. The evidence presented in this paper concludes that job placement services, training, wage subsidies, and other labor adjustment policies can be used to successfully help workers find employment and remain tied to the labor market. By contrast, direct job creation through public works projects and other government programs are less effective in helping workers over the long run." (Author's abstract, IAB-Doku) ((en))