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Boonjubun, Chaitawat, Garima Singh & Minna Van Gerven (2023): Social Dialogue in Defence of Vulnerable Groups in Post-COVID-19 Labor Markets. EU-Level Report. (SocArXiv papers), 49 S. DOI:10.31235/osf.io/qehks

Abstract

"The COVID-19 pandemic is an unprecedented health crisis that has caused far-reaching life consequences. The impact of COVID-19 and the measures that aimed to protect lives have triggered a social and economic crisis across the globe. This crisis calls for social scientists and researchers to study the shortcomings in social and economic preparedness and responses to the pandemic. The Social Dialogue in Defence of Vulnerable Groups in the Post-COVID-19 Labor Markets project (the DEFEN-CE project), funded by the Directorate-General for Employment, the European Commission, aims to examine institutional strategies and power relations in social protection and policymaking and policy implementation to protect labor markets and workers by analysing the governance of vulnerable groups in (post) COVID-19 labour markets as well as to produce research-based knowledge and expertise on the protection of vulnerable groups at the EU level, in the EU Member States and in the candidate countries. This report emphasises the institutional strategies and power relations among social partners and stakeholders at the EU level and highlights key findings from country case studies. The research questions are threefold. 1) What public policy and social dialogue measures targeting the selected vulnerable groups were implemented for employment and social protection during the COVID-19 pandemic 2020–2022? 2) How and to what extent did social dialogue play a role in the implementation of the social and employment rights of selected vulnerable groups in the COVID-19 pandemic between 2020 and 2022? 3) What lessons and opportunities does the COVID-19 pandemic provide for strengthening social dialogue at the EU level? DEFEN-CE employed a mixed-method approach combining both quantitative and qualitative research methods. The data are comprised of datasets, policy documents, scientific literature, existing statistical data, and semi-structured interviews. In this EU-level research, semi-structured interviews were conducted with 11 respondents: representatives from the European Parliament, trade unions, non-governmental organisations, and a European federation organisation representing domestic employers. It is important to note that the research team invited representatives from the European Commission to participate in the interviews but received no reply. (See the list of respondents in the appendices). DEFEN-CE’s EU-level study aimed to contribute to social dialogue research and the theoretical understanding of vulnerability. Relevant concepts and approaches to deepen our understanding of vulnerability are employed as the foundation for identifying ‘vulnerable groups’ in connection to the labor market. Furthermore, the purpose of this study is to identify the lessons learned by pinpointing crucial areas of policy development and implementation and necessary coordination mechanisms among social partners and by showcasing best practices." (Author's abstract, IAB-Doku) ((en))

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Créchet, Jonathan (2023): Heterogeneity in labor mobility and unemployment flows across countries. In: European Economic Review, Jg. 155. DOI:10.1016/j.euroecorev.2023.104441

Abstract

"Empirical studies of labor-market flows suggest cross-country differences in long-run aggregate unemployment inflows and outflows of a strikingly large magnitude. The canonical search-and-matching framework of Mortensen and Pissarides (1994, 1999b; the MP model) features small elasticities of steady-state unemployment flows with respect to firing costs, at odds with the idea that labor-market institutions such as employment protection policies are a primary driver of this variation. This paper shows that introducing permanent match-quality heterogeneity in the standard MP model substantially amplifies these elasticities. It then develops a quantitative search model with worker and job heterogeneity consistent with U.S. worker-flow data. This model implies that employment protection differences plausibly account for most of the long-run unemployment-flow variation across high-income countries. In sharp contrast, shutting down heterogeneity implies that large changes in matching efficiency are required to explain the same cross-country variation." (Author's abstract, IAB-Doku, © 2023 Elsevier) ((en))

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Dazzi, Davide & Daniela Freddi (2023): Remote working across the European Union before and in Covid-19 pandemic. (Quaderno DEM / Università degli Studi di Ferrara, Dipartimento di economia e management 2023,05), Ferrara, 44 S.

Abstract

"Policymakers, social parts, businesses, employees, media and citizens became familiar with a broad use of words such as remote working, teleworking, working from home, mobile worker, ICT-based worker. In this view, it is of crucial importance to define a general conceptual framework related to the terms referred to when a person works from a distance. The present paper delves into a taxonomy of the regulations and approaches to remote work within the EU. The results highlight that several characteristics of teleworking, positive and negative, were already known before the pandemic and they have substantially been confirmed by the massive shift occurred after the pandemic outbreak. As we saw in the report, no specific EU Directives were dedicated to remote working before Covid-19 even if many directives and EU regulations had indirect implications on it." (Author's abstract, IAB-Doku) ((en))

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Destefanis, Sergio, Matteo Fragetta & Nazzareno Ruggiero (2023): Active and passive labor-market policies: the outlook from the Beveridge curve. In: Applied Economics, Jg. 55, H. 55, S. 6538-6550. DOI:10.1080/00036846.2022.2159010

Abstract

"Following a panel ARDL approach, we appraise the impact of various indicators of active and passive labor-market policies within the framework of the Beveridge curve across fourteen OECD countries from 1985 to 2013, controlling for other factors, both institutional (tax wedge) and structural (technological progress, globalization). We embed the role of these variables within the specification of the Beveridge curve, finding that the generosity of unemployment benefits has a detrimental impact on labor-market matching, with the duration of benefits and the strictness of the rules pertaining to the deployment of benefits taking a key role in driving this result. Among active labor-market policies, employment incentives and especially training have a favourable effect on matching. There is evidence of a virtuous interaction between active and passive policies. A significantly detrimental role emerges for the tax wedge. These results are consistent across various specifications, and structural relationships are stable throughout the 2008–2013 period." (Author's abstract, IAB-Doku) ((en))

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Garcia-Cabo, Joaquin, Anna Lipinska & Gaston Navarro (2023): Sectoral shocks, reallocation, and labor market policies. In: European Economic Review, Jg. 156. DOI:10.1016/j.euroecorev.2023.104494

Abstract

"Unemployment insurance and wage subsidies are key tools to support labor markets in recessions. We develop a multisector search-and-matching model with on-the-job human capital accumulation to study labor market policy responses to sector-specific shocks. Our calibration accounts for structural differences in labor markets between the United States and the euro area, including a lower job-finding rate in the latter. We use the model to evaluate unemployment insurance and wage subsidy policies in recessions of different duration. After a temporary sector-specific shock, unemployment insurance improves reallocation toward productive sectors at the cost of initially higher unemployment and, thus, human capital destruction. By contrast, wage subsidies reduce unemployment and preserve human capital at the cost of limiting reallocation. In the United States, unemployment insurance is preferred to wage subsidies when it does not distort job creation for too long. In the euro area, wage subsidies are preferred, given the lower job-finding rate and reallocation." (Author's abstract, IAB-Doku, © 2023 Elsevier) ((en))

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Holzer, Harry J. (2023): Can Workforce Development Help Us Reach Full Employment? (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16624), Bonn, 24 S.

Abstract

"In this paper, I review the potential of workforce development programs to help the US get closer to "full employment." First, I provide some background on workforce development in the US, and also on the aggregate employment/labor force issues that workforce programs may or may not address. Then I review the empirical evidence on job training and other forms of workforce development, in terms of impacts on employment (as opposed to earnings). I briefly consider how the US experience in this regard compares and contrasts with that of other countries in the EU or OECD, and what we might learn from them. I conclude that more and better workforce development could help somewhat to achieve lower unemployment and higher labor force participation in the US, though we also need a range of other policies to achieve these goals." (Author's abstract, IAB-Doku) ((en))

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Ignaszak, Marek, Philip Jung & Keith Kuester (2023): Federal Unemployment Reinsurance amid Local Labor-Market Policy. (CRC TR 224 discussion paper series 419), Bonn, 87 S.

Abstract

"Consider a union of atomistic member states. Idiosyncratic business-cycle shocks cause persistent differences in unemployment. Private cross-border risk-sharing is limited. A federal unemployment-based reinsurance scheme can provide transfers to member states in recession, which helps stabilize local unemployment. Limits to federal generosity arise because member states control local labor-market policies. Calibrating the economy to a stylized European Monetary Union, we find that moral hazard puts notable constraints on the effectiveness of federal reinsurance. This is so even if payouts are indexed to member states usual unemployment rate or if the federal level pays only in severe-enough recessions." (Author's abstract, IAB-Doku) ((en))

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Krings, Torben (2023): Von der negativen zur positiven Integration. Die Entwicklung der europäischen Arbeitsmarktpolitik am Beispiel der Reform der Entsenderichtlinie. In: SWS-Rundschau, Jg. 63, H. 2, S. 143-159.

Abstract

"Dieser Beitrag untersucht, inwieweit die 2018 beschlossene Reform der EU- Entsenderichtlinie für einen Richtungswechsel in der europäischen Arbeitsmarktpolitik steht. Die Ergebnisse legen nahe, dass auf europäischer Ebene wieder vermehrt eine regulative Politik zustande kommt, die auf eine "Wiedereinbettung" von Marktkräften im Sinne der positiven Integration setzt. Entscheidend für das Zustandekommen der Reform waren die Rolle von "institutional entrepreneurs", Interessenkoalitionen auf inter- und supranationaler Ebene sowie ein gesellschaftspolitisches Klima, welches in Richtung Pro-Regulierung umgeschlagen ist. In dieser Hinsicht steht die reformierte Entsenderichtlinie ebenso wie die jüngst beschlossene EU-Mindestlohnrichtlinie für einen Paradigmenwechsel in der europäischen Beschäftigungspolitik, die sich stärker am sozialen Ausgleich im Binnenmarkt orientiert." (Autorenreferat, IAB-Doku)

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Marques, Marcelo, Lukas Graf & Judith Rohde-Liebenau (2023): Forming a supranational boundary-spanning policy regime – European intersectoral coordination in education and employment. In: Journal of education and work, Jg. 36, H. 7-8, S. 524-541. DOI:10.1080/13639080.2023.2275780

Abstract

"While European governance of individual policy sectors has received considerable academic scrutiny, less attention has been paid to the development of intersectoral coordination. This paper charts the emergence of a supranational boundary-spanning policy regime (BSPR) in education and employment in Europe. By looking at issues, ideas, interests and institutions, we gain a deeper understanding of the conditions for the emergence and further institutionalisation of European intersectoral coordination in education and employment from the 1990s onwards. The study relies on semi-structured interviews with European policy-makers in education and employment and EU policy documents. We analyse how endogenous and exogenous factors frame (policy) issues that contribute to the emergence and further strengthening of intersectoral coordination, the extent to which ideas for European education and employment stress intersectoral policy designs, how interests support or hinder intersectoral work, and which institutions are developed with an intersectoral reasoning. We find that endogenous forces (rather than exogenous ones) played a significant role in the emergence of a European BSPR in education and employment. Structural aspects and policy instruments (institutions), alongside ideas and interests, then contribute to the institutionalisation of the European BSPR in education and employment." (Author's abstract, IAB-Doku) ((en))

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Peters, Marjolein (2023): European Network of Public Employment Services: Trends in PES - Assessment Report on PES Capacity 2022. Luxembourg: Publications Office of the European Union, 74 S. DOI:10.2767/908915

Abstract

"The report provides an overview of key trends in the development of PES, describing aspects of their capacity and the client services they offer. It is based on PES replies to the annual PES Capacity survey received from 32 PES in July and August 2022. This year, specific information was collected on the cooperation of PES with municipalities and how PES use outsourcing to work with other actors in the labour market ecosystem. Two more important additional topics this year are the impact of the pandemic (continuing from the 2021 report) and the support PES provide to jobseekers from Ukraine." (Author's abstract, IAB-Doku) ((en))

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Theodoropoulos, Nikolaos & Georgios Voucharas (2023): Firm Closures and Labor Market Policies in Europe. Evidence from Retrospective Longitudinal Data. (GLO discussion paper / Global Labor Organization 1288), Essen, 35 S.

Abstract

"We examine the impact of active and passive labor market policies expenditures on the probability of re-employment, re-employment duration, unemployment duration, and re-employment wages in the case of job displacements due to firm closures. We use retrospective homogeneous longitudinal data from the Survey of Health, Ageing and Retirement in Europe and OECD data for 24 countries over the period 1985-2017 and we operate within alternative econometric frameworks. Our findings suggest that, in contrast to passive labor market policies, investing in active labor market policies increases the re-employment probability and the re-employment duration, reduces the risk of staying unemployed, and leads to higher wages at the lower end of the conditional wage distribution. Passive labor market policies estimates offset active labor market estimates and their interaction effect is always negative, but complementarities effects are found for Northern countries. By breaking down active and passive labor market policies into eight subcomponents, our results indicate that they have significant heterogeneous effects within and across labor market outcomes. Further, expenditures on labor market policies vary substantially across regions. For instance, active labor market policies have a stronger impact for Eastern countries, whereas passive labor market policies such as out-of-work income has a positive impact for Southern countries. Further, females are found to benefit more from active labor market policies in terms of re-employment probability, duration of re-employment, and risk of unemployment, but not in terms of wages, compared to males. Policymakers may consider the importance of implementing diverse reforms tailored to different countries and groups to enhance the effectiveness of labor market policies." (Author's abstract, IAB-Doku) ((en))

Abstract

"The European Commission broadly defines undeclared work as "any paid activities that are lawful as regards their nature, but not declared to public authorities”. Undeclared work has important economic and social implications, including the loss of social security contributions and taxes, but also higher incidence of work accidents, missed professional development opportunities for workers, unfair competition and market distortions for businesses, among others. The European Union (EU) has set a target of a 78% employment rate of the population aged 20 to 64 by 2030 (European Pillar of Social Rights). Tackling undeclared work can contribute to this target by creating more declared work. In this context, the European Commission launched this study to gather deeper insights into, and empirical evidence of, successful policies and policy combinations for tackling undeclared work. This study reviewed empirical evidence across the full range of direct and indirect policy measures, including their potential effectiveness in transforming undeclared work into declared work. The idea was to identify the most effective policies for reducing the volume of undeclared work and linked damages depending on the type of undeclared work, the target groups (drivers) and/or geographical specificities." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2023): Joint Employment Report 2024. Commission proposal. (Joint employment report), Luxembourg: Publications Office of the European Union, 165 S. DOI:10.2767/17157

Abstract

"The Joint Employment Report (JER) by the European Commission and the Council monitors the employment situation in the Union and the implementation of the Employment Guidelines, in line with Article 148 of the TFEU. The report provides an annual overview of key employment and social developments in the Union and of Member States’ recent policy measures, in line with the Guidelines for the Employment Policies of the Member States. It also identifies related key priority areas for policy action. Chapter 1 of the report presents an overview of key employment and social trends and of progress made on the 2030 EU headline and national targets, as well as horizontal findings based on the principles of the Social Convergence Framework (SCF). Chapter 2 analyses challenges and policy responses in the Member States for each of the four employment guidelines. Chapter 3 provides country-specific analysis for all Member States in line with the principles of the SCF. Based on the Commission’s proposal, and following exchanges in the relevant Council advisory committees, the final text will be adopted by the Employment, Social Policy, Health and Consumer Affairs (EPSCO) Council. Addressing the challenges identified in the report will contribute to achieving upward social convergence, strengthen the Union’s drive towards fair green and digital transitions and contribute to facing demographic change, as well as the achievement of the Sustainable Development Goals and the implementation of the Union of Equality Strategies." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2023): Quarterly Review of Employment and Social Developments in Europe (ESDE) - November 2023. (Employment and social developments in Europe : quarterly review), Luxembourg, 19 S.

Abstract

"ESDE quarterly reviews periodically provide an overview of recent social and labour market developments in the EU, accompanied by specific thematic analyses. The thematic part of this review focuses on the impact of demographic changes on labour market outcomes and the potential of pension reforms to counteract these projected trends. This is an important topic in the context of demographic change in the EU over the next decades and the corresponding impact on employment rate, economic dependency ratio and social security contributions. Looking at pension reforms, the thematic focus shows that increasing the statutory and effective retirement age can play an important role for addressing the impending challenges stemming from population ageing and decline. It can at least in part mitigate the impact of ageing on employment and economic dependency. Nevertheless, it is also highlighted that a more comprehensive approach encompassing broader labour market reforms may be required to ensure the financial stability of social security systems in the long term, given the projected increases of recipients paired with higher social security contributions per employed person." (Author's abstract, IAB-Doku) ((en))

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OECD (2023): OECD-Wirtschaftsberichte: Deutschland 2023. (OECD-Wirtschaftsberichte. Deutschland), Paris, 178 S. DOI:10.1787/80df9211-de

Abstract

"Nach zehn Jahren mit dynamischem exportinduziertem Wachstum, sinkender Arbeitslosigkeit und Haushaltsüberschüssen zeigten die Pandemie und die Energiekrise, dass Deutschland strukturelle Schwachstellen aufweist und seine ökologische und digitale Transformation unbedingt beschleunigen muss. Gleichzeitig erhöht die rasche Bevölkerungsalterung den Druck auf die öffentlichen Finanzen und verschärft den Fachkräftemangel. Um das Arbeitsangebot zu erhöhen, ist es wichtig, die Steuern und Abgaben auf Arbeit insbesondere für Geringqualifizierte und Zweitverdienende zu senken, die Fachkräftemigration zu erleichtern und die Aus‑ und Weiterbildung zu verbessern. Eine modernisierte Verwaltung mit weniger Bürokratie und besseren öffentlichen Dienstleistungen würde sich positiv auf die wirtschaftliche Dynamik und die Innovationstätigkeit auswirken. Um den hohen Investitionsbedarf zu decken und gleichzeitig die Tragfähigkeit der öffentlichen Finanzen zu wahren, müssen Steuervergünstigen abgebaut werden, denn häufig sind sie verzerrend, regressiv oder umweltschädlich. Außerdem gilt es, den Steuervollzug zu stärken, die Ausgabeneffizienz im öffentlichen Sektor zu erhöhen und die Ausgaben besser zu priorisieren. Das Ziel der Klimaneutralität bis 2045 erfordert kosteneffiziente Maßnahmen, damit weder die Wettbewerbsfähigkeit noch der soziale Zusammenhalt geschwächt werden. Deutschland sollte die CO2 ‑Bepreisung ausweiten, sie aber mit gut konzipierten sektorspezifischen Bestimmungen und Beihilfen kombinieren, um insbesondere grüne FuE zu fördern, den Ausbau nachhaltiger Verkehrs‑ und Stromnetzinfrastrukturen voranzutreiben und den Wohngebäudesektor zu dekarbonisieren. Die Einnahmen aus der CO2 ‑Bepreisung können Niedrigeinkommenshaushalten zugutekommen und die aktive Arbeitsmarktpolitik verbessern. Dies würde den sozialen Zusammenhalt stärken." (Autorenreferat, IAB-Doku)

Abstract

"The EU labor market policy (LMP) database collects information about government actions to help people with a disadvantage in the labor market, primarily by facilitating and supporting transitions from unemployment or inactivity into employment. This can take the form of financial support – such as unemployment benefits – or practical support ranging from basic guidance services to the provision of training, work experience and other actions aimed at improving a persons’ employability. It also includes incentives for employers to take on people from defined target groups. In the LMP database these actions are referred to as interventions. The LMP data are collected annually by a network of national delegates from administrative sources in each country on the basis of a comprehensive methodology that provides detailed guidelines on: which interventions to cover; how to classify interventions by type of action; how to measure the expenditure associated with each intervention; and how to measure the number of participants. The LMP data serve to inform analysts and policy makers about the labour market policies provided in the EU Member States and provide an evidence base for further development of policy. LMP data are used in routine monitoring and benchmarking frameworks adopted by the European Commission to identify key trends and challenges across the EU Member States and in analysis supporting a range of European policy initiatives. This note presents an analysis of the latest available LMP statistics. It includes an overview of the key data available for 2020 and an analysis of the impact of the COVID-19 crisis on the provision of LMP in the Member States. Readers are recommended to refer to information on the characteristics of LMP statistics provided in Annex 1 to aid understanding of the data presented." (Author's abstract, IAB-Doku) ((en))

Abstract

"The EU labor market policy (LMP) database collects information about government actions to help people with a disadvantage in the labor market, primarily by facilitating and supporting transitions from unemployment or inactivity into employment. This can take the form of financial support – such as unemployment benefits – or practical support ranging from basic guidance services to the provision of training, work experience and other actions aimed at improving a persons’ employability. It also includes incentives for employers to take on people from defined target groups. In the LMP database these actions are referred to as interventions. The LMP data are collected annually from administrative sources in each country on the basis of a comprehensive methodology that provides detailed guidelines for the collection of data: which interventions to cover; how to classify interventions by type of action; how to measure the expenditure associated with each intervention; and how to measure the number of participants. The aim of collecting this data is to serve as tool for policy analysts and policy makers to gain a clear understanding of the labor market policies provided in the EU and facilitate well informed decision-making. LMP data is used both in routine monitoring and benchmarking frameworks employed by the European Commission to identify key trends and challenges across the EU Member States and in analysis supporting a range of European policy initiatives. This note presents an analysis of the latest available LMP statistics. It includes sections providing an overview of the key data available for 2019, analysis of LMP based indicators, and an examination of insights data on different type of intervention can provide for key EU policy initiatives. Readers are recommended to refer to information on the characteristics of LMP statistics provided in Annex 1 to aid understanding of the data presented." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2023): Annual report 2022 / European Network of Public Employment Services (PES). (Annual report … / European Network of Public Employment Services), Luxembourg, 25 S. DOI:10.2767/54453

Abstract

"The 2022 Work Program of the PES Network was designed to be implemented in a challenging context, whereby pre-existing labor market trends have been hastened by the COVID crisis. The actual context proved to be even more demanding. While unemployment remained at record low levels, labor shortages grew across many sectors. PES were furthermore called upon when millions of Ukrainians fled their country, and so far more than 4 million registrations for temporary protection1 have been recorded in the EU. In the wake of a potential recession, PES’ expectations for short term developments in employment and unemployment levels (as measured by the European Labor Market Barometer) have fallen consistently since May, to reach levels comparable to the height of the COVID 19 crisis. Overall, the Network was able to implement more than 20 activities in 2022, including some in addition to those planned, to support PES in helping displaced people from Ukraine." (Text excerpt, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2023): Labour market policy - Expenditure and participants: Data 2020. (Labor market policy - expenditure and participants), Brüssel, 223 S. DOI:10.2767/74692

Abstract

"This publication presents statistics on labor market policy (LMP) interventions implemented by EU Member States, Norway and the United Kingdom in 2020, together with time-series for key variables covering the period 2008-2020. 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))

Abstract

"Drawing on an extensive analysis of secondary literature, numerous country case studies, and the ILO's 2021 survey encompassing 94 public employment services worldwide, this report sheds light on significant insights. The report underscores that the integration of employment services within a comprehensive policy and legal framework, coupled with continuous capacity-building efforts, leads to enhanced effectiveness and long-term sustainability. Moreover, the report emphasizes the importance of synergies and harmonization between employment services, active labor market policies, social protection policies, and systems. It delves into the modernization of public employment services, extending beyond mere digitalization, by advocating for a holistic approach that assists clients in overcoming labor market and other obstacles. The report also advocates for partnerships with other labor market institutions, training organizations, and social protection entities to broaden their reach and impact." (Author's abstract, IAB-Doku) ((en))