Transcript Slide 1
From a beautiful swan to an ugly duckling?
– Danish activation policy since 2003
Henning Jørgensen
Professor, Aalborg Universitet, CARMA [email protected]
, ASPEN/ETUI conference, Brno, March 2009
Activation as part of the ”modernization” of the welfare systems
Activation part of a new intervention paradigm
employment as goal and the integration mechanism new moralism build into contractual arrangements reinventing identities (economic citizenship)
Activation regimes: diversity
different concepts of active labour market policy LMP expenditures differ strongly LMP priorities differ strongly LMP procedures differ strongly 2
Expenditures on Labour market policy 2005
Denmark Net herlands Belgium Germany Finland France Sweden Spain Port ugal Aust ria Swit zerland Norway Ireland It aly Canada UK Japan USA 0 1 2 3 Spending as percent of GDP 4 5 Active Passive 3
Construction of activation systems based on:
Egalitarian values
social logic, outcome of struggles Beveridgean rationale
Paternalistic values
functional logic, outcome of construction Bismarckian rationale
The Danish activation system of the 1990´es based on egalitarian values
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Activation systems – look at more levels:
Activities: common discourses – different qualities/systems/models Steering arrangements: corporatism vs. contractualization Financing: public-private mobilization of resources/incentives based arrangements 5
Contextualization of activation systems
Labour market situations and IR systems Welfare state traditions Macro-economic regimes Learning capability of people and organizations Power relationships EU influence in national system
Collective mechanisms and collective memories decisive as to successfully (re)integrating individuals and reforming public policies
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The Danish labour market system
A voluntaristic bargaining system
(collective agreements since 1899)
A political interventionist strategy
densely organised labour market negotiated regulation of labour market questions active labour market policies (especially since 1994) generous unemployment benefit system (socializes costs of flexibility) 7
Denmark: Socio-economic and political context Economic problems and high unemployment during the 80es and beginning of the 90es New Social Democratic lead governments 1993-2001 New Policy-Mix of offensive macro-economic policy and active LMP Readjustments of policy in 1995, 1996 and 1999 in accordance with recovery New Liberal-Conservative government in 2001 – and a new LMP introduced 8
The Nordic Approach: Macro-economic policy Wage policy
Collective agreements
The social partners The welfare state
Income security Services and LMP
”Flexicurity” Social protection Low High Job protection Low High
UK USA Italy Denmark Germany Sweden 10
The Danish flexicurity system
The primary axe of the Flexicurity model
Flexible labour market
• Strong rotation between jobs • Low job security • Quick structural adaptation
Social security The social partners
• Income security • High percieved job security
Active labour market and educational policies
Employment security 11
Work motivation high in Scandinavia
Question: ”I would be glad to work even if I did not have a need for the money”
Country
Sweden Denmark Norway Switzerland Japan Germany USA Hungary Portugal UK France Netherlands Cyprus Ireland Spain Czech Rep.
Slovenia Bulgaria
Agree (totally or partly) %
75 78 74 70 69 71 60 57 63 55 53 52 47 52 52 47 43 36
Percentage Difference Index %
64 62 61 52 51 50 36 35 34 27 21 21 19 18 15 15 0 -7 1) 1) Difference between ”agree” and ”disagree” Source: International Social Survey Programme (ISSP), 1997.
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Structure of tax and contribution receipts
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Danish LMP reform 1993/1994
* Content: - from rules to needs - individual action plans
* Steering
- regionalization - the social partners in pivotal positions
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Activation in Denmark
Before 1994 Work Measures After 1994 Measures 15
Unemployment figures (%), 1994-2006
12 11 10 9 8 3 2 1 0 7 6 5 4 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Denmark OECD, Employment outlook, 2007.
Germany EU (average) 16
LMP regimes – employment rates 2002
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Denmark: the Phillips curve flattened out!
25 20 1974 1975 15 10 5 0 0 Source: ADAMs databank 1973 1971 1969 1967 1968 1964 1963 1959 1960 1956 1976 1998 1987 1981 1982 1986 1997 1983 1988 1984 1996 1990 1995
Labour market policy reform
1992 2 4 6 8 10 Unemployment (percentage) 12 14 18
Some basic figures for Danish flexicurity: ”the security of the wings” (up to 2004)
30 procent change jobs each year 13 percent of the workforce complete a CVT-courses each year 20 procent of the workforce experience unemployment each year
Flexible labour market CVT Social security
11 procent in ALMP each year
ALMP
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Public finances in Denmark, % of GDP 1995
General government expenditure
Denmark Total OECD 60.3
42.4
2004
56.3
40.8
Tax and non-tax receipts
Denmark Total OECD 58.0
38.4
58.6
37.5
Budget balances
Denmark Total OECD
Government debt
Denmark Total OECD - 2.3
- 4.0
78.4
73.7
2.3
-3.3
49.4
76.4
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Source: OECD
New LMP reform of the new government: ”More people to work” 2002/2003
Individual and flexible contacts with the unemployed persons
Job plan
Offers
guidance and qualification trainee service wage subsidies 21
Those outside - Who are they?
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New structural reform 2007 - 2009
Towards one-tier system:
Joint entrance for all kinds of unemployed people in jobcentres (common for municipalities and public employment service)
From 14 to only 4 regions:
From steering bodies to mostly monitoring agencies
From corporatist steering to state-municipality steering:
Reduced role of the social partners Strong, big municipalities in pivotal positions More rule-based efforts More standardized measures Erosion of regionalized labour market policy The social partners without much power and motivation 23
Danish employment policy 2009 Content:
* Shift of priority from fighting unemployment towards increasing the supply of labour * Activation to become threatening to unemployed people in order they will find a job themselves
Processes:
* The social partners no longer in pivotal positions: municipalities takes over decision-making responsibility * coordination weakened in the system
Polity:
* schizophrenic mixture of control and competition (decentralized operations – centralized steering) 24
Central The Labour Market Steering System in Denmark 2006
Parliament Minister of Employment National Employment Board
”Arbejdsmarkedsstyrelsen”
Labour Market Administration
Evaluations Goals Resources Regional ”Arbejdsformidlingen” (AF)
Employment Service
County
Regional Labour Market Board
Municipalities Educational Institutions Unemployment Offices Firms 25
The Labour Market Steering System in Denmark 2007 - 2009
State financing unemployment benefits and efforts
Minister of Employment Regional service Region of employment
Monitoring of effects and results
Jobcentres S B K C K
Municipal financing of assistance and efforts BER
RBR LBR
KB 26
The new labour market steering system from 1.8.2009
Municipalities take over responsibilities
Economic responsibility for unemployment transferred as well
Economic incentives to steer activities
Strong monitoring and intervention from the side of the state
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Danish LMP: from beautiful swan to an ugly duckling?
LMP no longer ”owned” by the social partners In LMP: Threats and sanctions for those who do not have the ”right” attitudes and motivation From qualification measures to ”shortest possible way to a job” Towards a unified benefit system?
Leaving Danish flexicurity behind?
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Policy changes - assessment
Continuity
Content
Break
Gradual change Process
Incremental change
Reproductive adaptation
Abrupt/ Brusque change
Regime survival System transformation
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Ways of creating policy change Principal features ”Crowding out” ”Breed of new elements” ”Reshaping” ”Exhaustion” Alternative solutions to the present institutions New elements to be connected to present institutions Re-use of old institutions for new purposes Gradual erosion of institutions over time Mechanisms Shortcomings Differentiated growth New interpretation Use up Execution Openings for new behavior Invasion of foreign ideas Quicker growth of new elements Gap between rules and practice New advantages connected to the growth Unintended conflicts to be solved Change of normal practice Falling returns
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Content Process
”Crowding out ”Breed of new elements” discourses on individualisation of risks
introduction of ”other actors” Dutch examples to be copied
Outsourcing of activities From motivation to control
Municipality based actions From individual action plans to narrow job plans
14 job centres with municipal leadership only
Cross-profesional unemployment insurance funds Regional LMP substituted by local discussions
New actor system Focus on effects only – downplaying regional strategic discussions
Local labour market boards instead of regional ones Local job center activities to be monitored
”Reshaping” from ”learn-fare” to ”quickest possible way to a job” firm contacts with the unemployed persons Activation changed and downsized Ceiling of social assistance Low start help for immigrants The role of the social partners changed from policy makers to monitoring agents New evalutation practices Uncoordinated control systems
”Exhaustion” The state run public employment service system abolished Gender equality ”mainstreamed” and forgotten Regional LMP eroded Network activities having a new local basis Motivation of private actors to participate lowered
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Implementation depends on organizing principles
The labour market calls for shifting and dynamic interventions: But the jobcentres are transformed into traditional bureaucracies!
Tasks Uniform Variable Technologies Standardized Non-standardized Bureaucracy Management Professional organisation Learning organisation
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Internal behavioral consequenses:
”Wicked” problems redefined as ”tame” ones Steet-level bureaucrats have less discretion No further training and education in the system (e.g.: you just need to know how to act according to an order!) Controlling the unemployed people: they need to learn how to handle their own situation and to reshape their attitudes 33
External actors institutionalizing cooperation
competition ”Cartel”-like competition collective reasons Partnership ”Market” competition individual reasons Network cooperation 34
cooperation
trust learning coupling mechanisms norms resources motivation
actors coordination cognition
institutional set-up incentives goals
political system
Why do ideas travel?
The new institutionalists speak of ”isomorphic mechanisms” •
Coercive
(rarely) •
Normative
•
Mimetic
(perhaps: but norms only direct imitation) (yes!) 36
Imitation and invention go hand in hand
a) Imitation a first cognitive step b) Imitation weakens the original attraction of the invention c) Imitiation has to be adapted to national institutional settings and traditions multiple and intertwined processes 37
Looking for national solutions:
Translation is a vehicle Imitation its motor Fashion sits at the wheel or you can use present Danish activation system as an non-inspiring example: it is an ugly duckling!
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Forms of activation systems Approach
I. II.
Liberal
III.
Paternalistic Welfare security
IV.
Activation of social protection Principal system of social integration
Labour market and family Competition/ wages/incentives family responsibilities Labour market participation Income security through public support Active participa tion in activation and educational systems
Active mechanisms
Paternalistic help and strong sanctions
Role of passive support
Negative work incentives, and help for the poor only Measures in cash depending on complying with rules and advices (Un)conditioned basic income Activation measures and supportive policies Diagnostic assessment of basic needs Positive incentives and public supply of offers
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