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Eichhorst, Werner, Paul Marx, Ulf Rinne & Johannes Brunner (2022): Promoting Youth Employment During COVID-19: A Review of Policy Responses. (IZA policy paper 188), Bonn, 32 S.

Abstract

"Economic and social disruptions caused by the COVID-19 crisis have particularly affected younger people, and therefore policy should respond with measures, programmes and initiatives targeted at this population group. Next to broader labour market and economic measures, which ultimately also benefit younger people, youth-targeted measures are needed given the specific impacts of the pandemic and resulting challenges. Against this background, this policy brief gives an overview on actual policy responses in the area of youth employment during the COVID-19 crisis in 20 selected countries. If such measures are implemented, they share the common goals of reducing the negative impacts of the COVID-19 crisis on younger workers and avoiding long-term scarring effects. However, the precise nature, extent and scope of such measures substantially differ across countries. Given the fragility and large uncertainty of economic recovery that is still present in early 2022, broader policy support continues to be needed, including specific policy measures targeting youth." (Author's abstract, IAB-Doku) ((en))

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Genova, Angela & Eamonn Davern (2022): European Network of Public Employment Services: Practitioner toolkit on strengthening PES to improve the labor market outcomes of persons with disabilities. Luxembourg: Publications Office of the European Union, 54 S. DOI:10.2767/034981

Abstract

"This toolkit provides Public Employment Services (PES) with practice-oriented knowledge to improve labor market outcomes for persons with disabilities. This toolkit provides a practical guide, with concrete examples, for how Public Employment Services (PES) can promote the participation of persons with disabilities in the labor market. The accessible toolkit intends to support PES in their role as key agents for the implementation of the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD). It is a deliverable of the European Commission’s new Disability Employment Package - a flagship initiative of the Strategy for the Rights of Persons with Disabilities 2021-2030, as well as their own ambition to meet the needs of different client groups. The objective of the toolkit is to provide PES with information and advice on strategies and practices to support them in combatting labor market discrimination against persons with disabilities and further their effective labor market participation." (Author's abstract, IAB-Doku) ((en))

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Giupponi, Giulia, Camille Landais & Alice Lapeyre (2022): Should We Insure Workers or Jobs during Recessions? In: The Journal of Economic Perspectives, Jg. 36, H. 2, S. 29-54. DOI:10.1257/jep.36.2.29

Abstract

"What is the most efficient way to respond to recessions in the labor market? To this question, policymakers on the two sides of the pond gave diametrically opposed answers during the COVID-19 crisis. In the United States, the focus was on insuring workers by increasing the generosity of unemployment insurance. In Europe, instead, policies were concentrated on saving jobs, with the expansion of short-time work programs to subsidize labor hoarding. Who got it right? In this article, we show that far from being substitutes, unemployment insurance and short-time work exhibit strong complementarities. They provide insurance to different types of workers and against different types of shocks. Short-time work can be effective at reducing socially costly layoffs against large temporary shocks, but it is less effective against more persistent shocks that require reallocation across firms and sectors. We conclude that short-time work is an important addition to the labor market policy-toolkit during recessions, to be used alongside unemployment insurance." (Author's abstract, IAB-Doku) ((en))

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Haapanala, Henri (2022): Carrots or sticks? A multilevel analysis of active labour market policies and non-standard employment in Europe. In: Social Policy and Administration, Jg. 56, H. 3, S. 360-377. DOI:10.1111/spol.12770

Abstract

"Spending on active labour market policies (ALMPs) has increased across Europe following the 2007 flexicurity strategy which emphasised smooth and rapid transitions from unemployment to work. Despite broad scholarly coverage of the activation turn, the connection between labour market policies and changes in non-standard employment remains unclear. Applying random effects within-between regression analysis, this paper finds that coercive, ‘hard’ ALMP instruments incentivising rapid re-employment with the threat of withdrawing unemployment benefits are associated with higher likelihood of involuntary part-time employment, whereas supportive, ‘soft’ ALMP strategies with a focus on upskilling and public sector occupation are associated with higher voluntary but lower involuntary part-time employment. The results from 25 countries over two decades shed light on the heterogeneous results of past ALMP research which has not adopted a consistent line on the supportive-coercive dichotomy. With European employment policy increasingly applying hard activation instruments to achieve full employment, an unintended consequence might be the expansion of precarious employment." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Hansen, Magnus Paulsen, Peter Triantafillou, Benedetta Bellò, Jan Boon, Dries Van Doninck, James Downe, Cate Hopkins, Erik Hans Klijn, Külli Sarapuu, Vidar Stevens & Koen Verhoest (2022): Accounting for what and to whom? Accountability tensions in collaborations addressing long-term unemployment. In: Social Policy and Administration, Jg. 56, H. 7, S. 1156-1171. DOI:10.1111/spol.12846

Abstract

"Across Europe, public employment services are experimenting with more holistic and cross-sector collaborations to tackle the wicked problem of long-term unemployment. These collaborations operate in a context characterised by tensions produced by multiple demands for accountability. Based on case studies of the accountability relations and challenges in five such collaborations in the Netherlands, Belgium (Flanders), Estonia, Scotland and Denmark, we found that: rigorous use of quantifiable measurement regimes made it difficult to attribute salience to important aspects of the progress made by the unemployed citizen; standardised accounts come with the risk of reductionist understandings of the citizen's social circumstances and resources; superficial participation by local politicians resulted in rather weak political accountability and a marked ambiguity of the role of the client as both accountee and accountholder." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Hartley, Robert Paul, Carlos Lamarche & James P. Ziliak (2022): Welfare Reform and the Intergenerational Transmission of Dependence. In: Journal of Political Economy, Jg. 130, H. 3, S. 523-565. DOI:10.1086/717893

Abstract

"We investigate the effect of welfare reform on intergenerational welfare participation, using mother-daughter pairs in the Panel Study of Income Dynamics. We find that a mother’s AFDC/TANF participation increased her daughter’s odds of adult participation in that program by roughly 25 percentage points or more, but that welfare reform attenuated this transmission by at least 50 percent. However, there is no diminution of transmission after welfare reform when we consider the wider safety net or other outcomes. Daughters who grew up with mothers on AFDC/TANF were no better off after reform, with substitution toward other welfare programs over generations." (Author's abstract, IAB-Doku) ((en))

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Immervoll, Herwig, Rodrigo Fernández, Raphaela Hyee, Jongmi Lee & Daniele Pacifico (2022): De-facto gaps in social protection for standard and non-standard workers. An approach for monitoring the accessibility and levels of income support. (OECD social, employment and migration working papers 271), Paris, 42 S. DOI:10.1787/48e282e7-en

Abstract

"Social protection systems play a key stabilising role for individuals and societies, especially in the recent context of heightened uncertainties. This paper proposes a new empirical approach for quantifying the accessibility and value of income transfers following an earnings loss. The approach allows to estimate and monitor gaps in the accessibility and value of social transfers between so-called “standard” and “non-standard” workers. It first presents a methodology for assessing support levels for jobless individuals in specific circumstances that allows for comparisons across countries and over time. It then illustrates the approach using longitudinal survey data in 16 OECD countries." (Author's abstract, IAB-Doku) ((en))

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Langenbucher, Kristine & Matija Vodopivec (2022): Paying for results: Contracting out employment services through outcome-based payment schemes in OECD countries. (OECD social, employment and migration working papers 267), Paris: OECD Publishing, 53 S. DOI:10.1787/c6392a59-en

Abstract

"OECD countries deliver publicly-funded employment services through different institutional arrangements. While in most OECD countries the majority of such services are delivered by public employment services, in two in five OECD and EU countries (or regions) they are partly or fully contracted out to external providers, including for-profit and not-for-profit entities. Contracting out employment services to outside providers offers many potential benefits: an increased flexibility to scale capacity in line with changes in unemployment, the possibility of offering services more cost-effectively, the option to better tailor services through the use of specialised service providers and the possibility to offer jobseekers choice of providers. However, achieving these benefits will depend on the actual design and monitoring of the contracting arrangements that are put in place. Focusing on the job brokerage, counselling and case-management employment services typically provided by public agencies, this paper reviews the experiences of OECD countries that have contracted out employment services through outcome-based payment schemes. It highlights the need to carefully consider questions related to the design and implementation of this form of contracting: fostering competition amongst potential providers, setting appropriate minimum service requirements and prices for different client groups, and ensuring the accountability of providers through monitoring and evaluations. These issues are discussed based on country examples, which are also detailed in factsheets contained in the online annex of the paper." (Author's abstract, IAB-Doku) ((en))

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Leber, Ute, Thomas Kruppe, Franziska Schreyer & Tim-Felix Grabert (2022): Vorbild Österreich: Impulse für die Weiterbildungspolitik in Deutschland? (Podium). In: IAB-Forum H. 29.11.2022 Nürnberg, 2022-11-28. DOI:10.48720/IAB.FOO.20221129.01

Abstract

"Die Bundesregierung plant, die arbeitsmarktbezogene Weiterbildung von Beschäftigten verstärkt zu fördern. Sie beruft sich dabei in ihrem Koalitionsvertrag auf Österreich als Vorbild. Dort können Beschäftigte zu Weiterbildungszwecken schon seit Längerem mit finanzieller Unterstützung vom Staat eine berufliche Auszeit nehmen oder ihre Arbeitszeit reduzieren. Allerdings nehmen auch in Österreich Menschen, die einfache Tätigkeiten ausüben, vergleichsweise selten an Weiterbildung teil." (Autorenreferat, IAB-Doku)

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Rossetti, Federica, Bart Meuleman & Sharon Baute (2022): Explaining public support for demanding activation of the unemployed: The role of subjective risk perceptions and stereotypes about the unemployed. In: Journal of European Social Policy, Jg. 32, H. 5, S. 497-513. DOI:10.1177/09589287221106980

Abstract

"In recent decades, European welfare states have adopted demanding active labour market policies (ALMPs), aimed at increasing labour market participation through imposing stricter work-related obligations and benefit cuts in case of job offer rejection. This article investigates whether support for such demanding ALMPs is driven by risk perceptions of future unemployment and negative stereotypes about unemployed persons. Insights into the role of risk perceptions and stereotypes offer opportunities to gain a better understanding of the impact of structural variables. Drawing on data from the European Social Survey 2016 in 21 European countries, the analysis reveals that higher subjective risk of unemployment decreases support for these ALMPs substantially, whereas negative perceptions of the unemployed increase support. However, these factors play at the individual level only and do not explain country-level differences in support of demanding ALMPs. The notable cross-national variation in support of activation policies is found to be unrelated to economic factors and to the strictness of activation requirements for unemployment benefits." (Author's abstract, IAB-Doku) ((en))

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Scruggs, Lyle A. & Gabriela Ramalho Tafoya (2022): Fifty years of welfare state generosity. In: Social Policy and Administration, Jg. 56, H. 5, S. 791-807. DOI:10.1111/spol.12804

Abstract

"This article describes an overview of key findings from the Comparative Welfare Entitlements Project (CWEP). CWEP compiles major features of the generosity of unemployment, sickness and public pension programs over the last several decades in 21 countries. Describing and extending earlier work to measure the institutional variation in major social insurance programs over time, we provide previously unpublished methodological details of widely used measures of program generosity; measures which have appeared in over 200 analyses during the last decade and a half. We find a high level of variation in wage replacement and benefit conditionality across programs in most countries; calling into question the notion of an historically stable configurations of characteristics, at least during the last 45 years. For instance, our research shows that several prototypical social democratic welfare states experienced the highest declines in generosity in the last three decades. Furthermore, we also show that, as late as the mid-1970s, some ‘social democratic’ welfare states still trailed some ‘conservative’ welfare states, including prototypical ones like Germany." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Villanueva, Ernesto & Effrosyni Adamopoulou (2022): Employment and wage effects of extending collective bargaining agreements. Sectoral collective contracts reduce inequality but may lead to job losses among workers with earnings close to the wage floors. (IZA world of labor 136), Bonn, 12 S. DOI:10.15185/izawol.136.v2

Abstract

"Der Gesamteffekt der Allgemeinverbindlichkeit von Tarifverträgen hängt davon ab, wie viele Arbeitsplätze aufgrund der tariflich geregelten Lohnuntergrenzen und sonstigen Arbeitsbedingungen abgebaut werden. Um die Auswirkungen auf Löhne und Beschäftigung bewerten zu können, müssen Informationen über Tarifverträge mit Längsschnittdaten zu Arbeitgebern und Arbeitnehmern verknüpft werden. Neue Erkenntnisse der Forschung zeigen, dass negative Effekte meist auf Arbeitnehmer mit Verdiensten in der Nähe der Mindestlöhne beschränkt sind. Öffnungsklauseln und Repräsentativitätserfordernisse können dem entgegenwirken." (Autorenreferat, IAB-Doku)

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(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))

Abstract

"Although men and women are typically taxed under the same rules, their different social and economic characteristics (e.g. income levels or labour force participation) mean that the tax system can inadvertently contribute to gender inequalities in society. Understanding and improving the impact of taxes on gender equality is a key dimension that governments need to consider as part of tax design to support inclusive growth. This report provides the first cross-country overview of governments' approaches to tax policy and gender, including reforms undertaken to date and potential areas of explicit and implicit gender bias. Covering 43 countries, it also explores the extent to which governments take into account gender implications in policy development, gender considerations in tax administration and compliance, and the availability and use of gender-disaggregated data. Finally, it also discusses priorities for further work on tax policy and gender issues." (Author's abstract, © 2022 OECD) ((en))

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Bagger, Jesper, Espen R. Moen & Rune Majlund Vejlin (2021): Equilibrium Worker-Firm Allocations and the Deadweight Losses of Taxation. (IZA discussion paper 14865), Bonn, 57 S.

Abstract

"We analyse the deadweight losses of tax-induced labor misallocation in an equilibrium model of the labour market where workers search to climb a job ladder and firms post vacancies. Workers differ in abilities. Jobs differ in productivities and amenities. A planner uses affine tax functions to finance lump-sum transfers to all workers and unemployment benefits. The competitive search equilibrium maximizes after-tax utility subject to resource constraints and the tax policy. A higher tax rate distorts search effort, job ranking and vacancy creation. Distortions vary on the job ladder, but always result in deadweight losses. We calibrate the model using matched employer-employee data from Denmark. The marginal deadweight loss is 33 percent of the tax base, and primarily arise from distorted search effort and vacancy creation. Steeply rising deadweight losses from distorted vacancy creation imply that the deadweight loss in the calibrated economy exceeds those incurred by very inequality averse social planners." (Author's abstract, IAB-Doku) ((en))

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Bhaumik, Sumon Kumar, Richard Frensch & Stephan Huber (2021): Political economy of labor market institutions in a globalised era. (IOS working papers 391), Regensburg, 29 S.

Abstract

"The paper extends the literature on the political economy of labor market institutions by developing a framework in which owners of capital can benefit from both greater labor market flexibility and better rule of law. Their choice of location of manufacturing centres can, therefore, by influenced both by reduction in expropriation that is associated with better rule of law and greater bargaining power vis-à-vis workers by way of greater labor market flexibility. It follows that where owners of capital are better placed to influence government choices of these institutions, labor market flexibility is influenced by both labor market institutions intensity of exports and as well as rule of law intensity of exports. These predictions are borne out by a cross-country empirical analysis." (Author's abstract, IAB-Doku) ((en))

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Cairo, Sofie & Robert Mahlstedt (2021): Transparency of the Welfare System and Labor Market Outcomes of Unemployed Workers. (IZA discussion paper 14940), Bonn, 43 S.

Abstract

"We study how the transparency of welfare systems affects labor market outcomes of unemployed workers in a large-scale field experiment. Our low-cost information intervention uses a personalized online tool that informs benefit recipients about their personal risk of a benefit reduction when not complying with a work requirement. We find disparate effects reflecting individuals' job search status. Providing personalized information improves labor market outcomes by mitigating the pressure to accept unstable part-time jobs among active job seekers with a low sanction risk. Inactive persons with a high sanction risk leave welfare and rely on alternative income support more frequently." (Author's abstract, IAB-Doku) ((en))

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Carey, David, Naomitsu Yashiro & Hyunjeong Hwang (2021): Boosting employment in Finland. (OECD Economics Department working papers 1671), Paris, 60 S.

Abstract

"In the context of the COVID-19 pandemic and resulting economic contraction and government debt build-up, the government is formulating reforms to raise employment by 80 thousand workers by 2029. Finland's employment rate has been lagging behind the Scandinavian Nordics, with most of the gap attributable to older workers, who have more favourable access to early retirement schemes than their Scandinavian counterparts. To restrict their use, extended unemployment benefit, which is paid to unemployed persons aged 61 or more after normal unemployment benefit expires until they retire or reach 65, should be phased out and non-medical conditions should no longer be taken into account for disability benefit applications of persons aged 60 or more. Activity rates for mothers of young children are also lower in Finland than in the Scandinavian Nordics mainly owing to Finland's generous homecare allowance. It should be reduced and access to convenient early childhood education and care services expanded to improve mothers' work incentives. By increasing mothers' work experience at critical points in their careers, such a reform would also help to narrow Finland's large gender wage gap. As part of its 2021 budget, the government is setting out labour market reforms to increase employment by 31 to 36 thousand workers. Such reforms should focus on promoting employment of older workers." (Author's abstract, IAB-Doku) ((en))

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Coady, David, Samir Jahan, Riki Matsumoto & Baoping Shang (2021): Guaranteed Minimum Income Schemes in Europe: Landscape and Design. (IMF working paper 2021,179), Washington, DC, 40 S.

Abstract

"This paper provides an overview of the design of means-tested Guaranteed Minimum Income schemes, which constitute an important component of social protection systems in European countries. It discusses how key design features differ across countries, including how countries balance the primary objective of poverty alleviation against the desire to both manage the work disincentives inherent in such programs and contain fiscal cost. The analysis finds a clear trade-off between both concerns in practice, with many countries combining low generosity with low benefit withdrawal rates (BWRs) thus prioritizing employment incentives over the primary objective of poverty alleviation. Many countries can reduce this trade off by combining higher generosity with higher BWRs. Countries with very high BWRs should consider reducing these, including through allowing income disregards and time dependent (rather than income-dependent) benefit withdrawal. The work disincentives associated with higher BWRs can also be attenuated through strengthening complementary activation policies that incentivize and support participation in the labor market." (Author's abstract, IAB-Doku) ((en))