Bringing the Jobless into Work? (eBook)

Contents 5
Preface 13
Bringing the Jobless into Work? An Introduction to Activation Policies 15
1 The broad shift towards activation 16
2 Objectives of activation policies 17
3 Defining activation 18
4 Target groups of activation 21
5 The economic view: Countering work disincentives 22
6 The welfare state perspective: Convergence and divergence across countries 23
7 International and supranational influences 24
8 The legal point of view: Implication for social rights 26
9 How to implement activation policies? implications for the new welfare governance 27
10 The specific contribution of this volume 28
11 Outline of the volume and the country chapters 29
References 30
Activation Policies in Germany: From Status Protection to Basic Income Support 31
1 Introduction 32
2 The shift towards activation 32
2.1 The legacy of a conservative European welfare state 32
2.2 The old system of unemployment benefits 33
2.3 The Hartz reforms 35
2.4 The political logic behind the policy shift 37
2.5 The silent change of the welfare state logic: From Bismarck to Beveridge? 39
3 Activating labour market policy today 41
3.1 The general framework 41
3.2 Target groups 42
3.3 Demanding and promoting under SGB III (unemployment insurance) 43
3.4 Demanding and promoting principles under SGB II ( basic income scheme) 44
3.5 The personal integration agreement 48
3.6 Sanctions 49
3.7 Activation measures for unemployment insurance benefit recipients 50
3.8 Activation measures for basic income support recipients 51
4 Constitutional constraints to activation 53
4.1 Constitutional guarantee of a subsistence minimum 53
4.2 The property guarantee 54
4.3 Constitutional guarantee of free choice of occupation 55
5 Governance and implementation 56
5.1 Distribution of competences 56
5.2 Changes in the organisational setting 57
5.3 Federal employment agency job centres for the short-term unemployed 57
5.4 ARGE job centres and municipal agencies for the long-term unemployed 60
5.5 Implementation 62
6 Outcomes of activation: A preliminary assessment 65
6.1 Unemployment and employment 65
6.2 Benefit receipt 66
6.3 Earnings 67
6.4 Public expenditure 69
6.5 Poverty 70
6.6 Overall assessment 71
7 Summary and outlook 73
List of abbreviations 76
References 77
Innovative but Inconsistent The French Strategy against Unemployment: 83
1 “Activation” in France: An overall perspective 84
2 The legal foundations of “activation measures” 86
2.1 Constitutional principles and foundations governing “activation measures” 87
2.2 Social security and labour relations: Legal framework 90
3 Minimum income benefits and other assistance benefits 93
3.1 Overview 93
3.2 Various minimum income benefits 93
4 Unemployment insurance and assistance (régime d’assurance chômage) 98
4.1 Organisation 98
4.2 The contribution-based protection regime (régime contributif) 99
4.3 Unemployment insurance (régime de solidarité) 106
5 The public employment service and employment programmes 108
5.1 Overview 108
5.2 Subsidised employment contracts (contrats aidés) 111
5.3 New type of employment contract with short dismissal periods 119
6 Controls and sanctions 122
6.1 Sanctions imposed on beneficiaries for non-compliance with duties 123
6.2 De-registration of claimants 124
6.3 Sanctions affecting benefits 124
6.4 Competences, procedures and legal protection 125
7 The second leg of the strategy: Reforming the funding of social protection/ labour law and fostering employment creation 125
7.1 Activating the funding of social protection 125
7.2 Social contribution reductions and tax credits: From targeting to a gradual mainstreaming 126
7.3 Family benefits are unlikely candidates to activation 128
8 Exit or activation for early retirees and disabled people? 130
References 133
The Swiss Road to Activation: Legal Aspects, Implementation and Outcomes 135
1 Introduction 136
1.1 General observations on activation in Switzerland 136
1.2 The legal concept of activation 137
2 The context of activation 138
2.1 The Swiss welfare state 138
2.2 The socio-economic context of activation 140
3 The development of activation 142
3.1 Trends in activation within the unemployment insurance scheme 143
3.2 Developing activation in social assistance and unemployment assistance programmes 144
3.3 Activating disabled people 144
4 The legal aspects of activation 145
4.1 The impact of labour law 145
4.2 Target group of activation 146
4.3 Legal schemes of activation 148
5 The implementation and the governance of activation 159
5.1 The implementation of activation 159
5.2 The governance of activation 162
6 The outcomes of activation 163
6.1 Activation and labour market conditions 163
6.2 Evaluation of activation within the unemployment insurance scheme 164
7 Conclusions 168
List of abbreviations 169
References 171
Activation as a Socio-Economic and Legal Concept: Laboratorium the Netherlands 175
1 Introduction 176
2 Transformations towards an activating welfare state 179
2.1 Social notion of activation 179
2.2 Definition of activation 183
2.3 Legal notion of activation 183
2.4 Legal framework and constitutional basis for activation 187
3 Instruments: Changes in benefits, benefit conditionality and enabling schemes 189
3.1 Unemployment Insurance Law (Werkloosheidswet, WW) 190
3.2 The Work and Welfare Act (Wet Werk en Bijstand, WWB) 196
3.3 The Act on Employment and Income Depending on Working Capacity ( Wet Werk en Inkomen naar Arbeidsvermogen, WIA Act) 199
4 Governance and actual implementation process 203
4.1 Governance in a bird’s eye view 203
4.2 Major features regarding the application of legal provisions 214
4.3 Legal issues of contracting out and reintegration services 217
5 Outcomes: Activation works, or does it? 223
5.1 Effects of employment services for return to work 223
5.2 Costs and benefits of employment services 225
5.3 Unemployment benefit: Individual reintegration agreements 225
5.4 Social assistance: Work First 226
5.5 Discussion 226
6 Concluding remarks: Activation law and policy 228
6.1 Mutual obligations 230
6.2 Right to integration 230
6.3 A legal doctrine? 231
References 232
Labour Market Policies Making All Persons Work: Modern Danish 235
1 Introduction 236
2 General orientation of the political ideas of Danish activation: activation as a concept 236
3 Changing target groups 238
4 General labour laws in Denmark 241
4.1 Labour law: Enacted law alongside collective bargaining law 242
4.2 The right to terminate employment 243
4.3 Types of dismissal and dismissal reasons 244
4.4 Legal consequences: Recourse to the courts 246
5 The law of unemployment insurance 247
5.1 Membership – financing – organisation 247
5.2 Benefit eligibility and entitlements 248
5.3 Benefit conditionality 250
5.4 Legal recourse 251
6 Activation measures 251
6.1 The developments of activation policy 1979–2006 253
6.2 Activation as a process: Implementation and governance 258
7 Outcomes of activation 260
7.1 The effect on search activity 261
7.2 The effect on skill and search cost 263
7.3 The welfare effects 265
7.4 Indirect labour market effects 266
8 Conclusion 267
References 269
Something New, Something Borrowed and Activation Policies in Sweden: “ Something Old, Something Blue” 271
1 Introduction 272
1.1 General labour laws in Sweden 273
1.2 Dismissal protection law 274
2 Welfare Arrangements for Unemployed in Sweden 277
2.1 From the economic crisis in the 1990s until today 278
2.2 Unemployment insurance 280
2.3 Social assistance as the last safety-net 283
2.4 Activity support 284
3 Labour market policy programmes 285
3.1 Labour market policy legislation 285
3.2 The development of municipal activation policy 290
3.3 “Active” programmes in Sweden: what do they entail? 291
3.4 Current and proposed changes on labour market policy 293
4 Rights and obligations within activation measures in Sweden 295
4.1 Rights and obligations: instruments for monitoring 295
4.2 Rights and obligations within municipal activation programmes 296
5 Governance and implementation of activation programmes 297
5.1 A central organisation for ALMP programmes 297
5.2 Local practices within municipal activation programmes 298
5.3 Implementation difficulties 300
6 Data and outcomes on activation policies 301
6.1 Results and effects of ALMP programmes 301
6.2 Research on municipal activation programmes 303
7 Concluding remarks on activation in Sweden 304
List of abbreviations 307
References 308
‘Employment First’: Activating the British Welfare State 311
1 Introduction 312
2 The legal foundation and governance of the British welfare state 312
3 The benefit system for working age people 313
3.1 Main cash benefits for people of working age 314
3.2 Trends in benefit expenditure 316
4 Activation policies 318
4.1 Benefit reform and activation under the Conservative Government 318
4.2 New Labour’s inheritance: Falling unemployment and increasing benefit dependency 321
4.3 Activation under New Labour: A ‘new contract for welfare’ 321
5 The governance of activation 334
5.1 Jobcentre Plus 335
5.2 Partnerships, contracts and contestability 336
6 Outcomes of activation policies 337
6.1 ‘What Works’: The role of evaluation 337
6.2 Employment, unemployment and inactivity 338
6.3 Benefit durations, leavers and ‘repeaters’ 339
6.4 The impact of activation requirements 342
6.5 The impact of ‘Make Work Pay’ 343
6.6 The impact of the New Deals and Employment Zones 345
6.7 Sanctions research 347
6.8 Implementation research and the New Deals 348
6.9 The impact of activation policies on individual rights 349
7 Conclusions and outlook 351
List of abbreviations 354
References 355
Activation from Income Support in the US 359
1 Introduction 360
1.1 Evolution of activation in policy 362
1.2 Socio-economic context 365
1.3 Activation target groups 368
1.4 The US employment promotion system 368
2 Legal framework 370
2.1 Constitutional law 370
2.2 Federal framework legislation 372
3 Activation in practice 381
3.1 Unemployment insurance 381
3.2 Federal social assistance 394
3.3 Tax incentive programmes 410
4 Conclusion 418
4.1 Effects of activation on the legal position of the individual 419
4.2 Economic effects of activation 420
List of abbreviations 422
References 424
Does Activation Work? 429
1 Evidence on micro- and macroeconomic outcomes 430
1.1 Theoretical considerations 431
1.2 Review of empirical results on individual effects 432
1.3 Evidence on macro-effects 436
1.4 Summarising the empirical evidence 441
2 The welfare state perspective: Is there a “contingent convergence” of activation policies? 443
2.1 Different worlds of activation? 443
2.2 Contingent convergence concerning the instruments of activation 446
2.3 Contingent convergence across target groups of activation 448
2.4 Contingent convergence in terms of governance 450
2.5 Contingent convergence in activation: Variations on a common theme 452
3 Outlook: The future of activation 453
References 456
Activation from a Legal Point of View: Concluding Remarks 459
1 The legal framework 460
1.1 The term “activation” 460
1.2 Constitutional parameters 462
1.3 Other sources of law 463
1.4 Enforcement of legal provisions and sanctions 465
1.5 Control of benefit access and sojourn time 467
2 The comparative view 468
2.1 The legal assessment of “activation” 468
2.2 Constitutional constraints 470
2.3 The complexity of legal norms 470
2.4 Transfer to the regional and local level 472
2.6 Outlook: The possible contribution of law for “activation” issues 473
2.5 Control and “ways out” of activation 473
Authors and Editors 475
List of Tables and Figures 485
List of tables 485
List of figures 487