european labour market - university carlo cattaneomy.liuc.it › matsup › 2007 › f88891 › liuc...
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European Labour Market
University of CastellanzaSpring 2008Session 1One European Union, many European labour
markets
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Overview
Background to courseThe policy issue – European employmentThe theoretical issue – institutions and the
labour marketGender and the labour marketFinancial systems and employment
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‘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!
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Understanding the labour market
SUPPLY:
Household, family & gender roles
Education & training
Migration
….
DEMAND
Firm structure: occupations, hieararchy
Firm strategy: mass market/ niche market
….
State and other institutions (trade unions, employers’ assocations…)
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European Social Model
Welfare state: social citizenship» Social rights to education, health, housing, and employment
Economic citizenship» Employment regulation
(dismissal, working time, equal rights)» Participation
(works councils, financial participation…)» Trade union representation
Key question: are these compatible with globalisation and economic competitiveness?
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Lisbon Declaration
Lisbon targets» 70% overall employment» 60% women» 50% older workers
‘Arbeit macht frei?’» But many societies and groups have ‘chosen’ low
employment rates, sometimes with high productivity
Economic citizenship» justifies employment» ensures work compatible with social reproduction
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Women’s participation in the labour market
Women’s participation in work has been rising EXCEPT where already highConvergence: the end of the housewife?
Employment rate (% of population 25-54)
0
20
40
60
80
100
1992 1994 1996 1998 2000 2002
FranceGermanyIrelandItalySwedenUKEU15
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Increasing participation
Changing attitudes» Feminism, independence, sexual autonomy
Changing legislation» Especially EU directives of 1970s
– Equal pay– Equal promotion & recruitment– Equality in social welfare systems
» Enforcement and promotion agenciesEducation» ‘Qualification lever’» Higher participation for more qualified» Women now outnumber men in most countries» BUT still clustering in “women’s jobs”
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Breadwinner models
Male breadwinner» Father responsible for household» Wife works at most for ‘pin money’
Modified male breadwinner» Man’s income decisive» Woman’s income important
Universal breadwinner» Everyone works» One person- one living income
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Gender regimes
Definition of male & female» INCLUDING who works & how
Tax and social welfare systemEducation systemEconomic organisationsChurch….
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Overall participation
Divergence greatest in core age groupTwo extremes:» High Scandinavia, low Mediterranean
Activity rate:% of populatation 15-64
Activity rate % of pouluation aged 25-54
France 62.7 78.7Germany 64.2 78.0Italy 47.9 60.3Sweden 75.8 85.5UK 68.3 76.4EU15 60.9 73.2
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Forms of women’s participation
Countries with high overall participation have very different forms of participationDeregulated labour markets = ‘bad’ jobs?
Part time as % all employment
Hours worked: difference- households with and without children
Marginal part-time as % all dependent employees
France 29.4 -1 9
Germany 36.4* -3.3 18
Italy 16.9 +2 8
Sweden 33.1 +0.1 6
UK 43.9 -6 21
EU15 33.5 -3.4** 14**
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Three worlds of welfare –
and ‘defamiliasation’
Liberal regime» Market solutions» Deregulated labour market-» Immigrant caring labour» Part-time and temporary work for women
Social democratic» Extensive care services:» Good low skill employment» Enable women to leave home
Conservative/ corporatist» Subsidiarity so family important» Insurance based benefits» Priority of full-time work
Mediterannean (?)» As conservative but incomplete coverage
Which countries?
UK and Ireland
Scandinavia
France and Germany
Italy, Spain, Greece…
New member states?
Changes?
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Firms, financial systems and inequality
Oppositions:» Rhineland versus Atlanticist» European versus Anglo-Saxon» Stakeholder versus Shareholder value
Theoretical arguments for diversity» Path dependency» Comparative institutional advantage
Globalisation» Markets» Technology» End of space/distance
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Liberal Market Economy (LME):
Finance from stock-market – shareholder value governance
Market based low trust relationships
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Co-ordinated Market Economy (CME):
Finance from banks and key shareholders: Stakeholder governance
Co-operative and high trust relationships
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Financial system and employment regulation
Where stock markets are important for firms, employment protection is low
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Inequality and employment
Unequal societies have high labour input (long hours, high employment rate)