flexicurity – a set of “common principles”? per kongshøj madsen centre for labour market...
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Flexicurity– a set of “common principles”?
Per Kongshøj Madsen
Centre for Labour Market Research (CARMA)
University of Aalborg
www.carma.aau.dk
BPFnet-seminar
Copenhagen, June 9, 2006
European Council March 2006In this context, the European Council asks Member States to direct special attention to the key challenge of "flexicurity" (balancing flexibility and security): Europe has to exploit thepositive interdependencies between competitive-ness, employment and social security…. The Commission, jointly with Member States and social partners, will explore the development of a set of common principles on flexicurity.
Presidency conclusions, European Council, Brussels, 23-24 March 2006
Some general advice
• Flexibility and security for the employees do not have to be contradictions
• Focus on protected mobility for people instead of trying to protect jobs
• Flexicurity arrangements can strengthen overall institutional competitiveness by promoting structural change
• ”One size will not fit all”
Four major criteria for transitional labour markets
• Empowerment: empower individuals to cope with the (new) risks of social life
• Sustainable employment and income: make transitions pay!
• Flexible coordination: establish a new balance between centralised regulation and self-organisation, more decision power to local levels
• Co-operation: stimulate local networks and public-private partnerships; the linking of resources
Schmid & Gazier (2002)
Assessing the Hartz-reforms
First, we ask to what extent flexibility …has been strengthened by the latest labour market reforms.
To assess the security dimension, we ask whether the measures provide minimum income security to the atypically employed.
… we further concentrate on the question if the measures enable transitions into standard employment, as an expression of enhanced employability.
Lastly, we try to assess if option security among the atypically employed is improved
Leschke et al (2006)
Preliminary thoughts
• We are looking for a strategy for policy-making
• The specific traits of ”flexicurity policies”?– Integration of different policy areas– There will be winners and loosers – at least in
the short run– Principles for the policy process should be
included
Common principles?
• The design: – The principle of integrating flexibility and
security
• The process: – The principle of negotiated ”trade-offs”
• The outcome: – The principle of sustainable employment and
social cohesion
# 1: Policy-design
• Both the flexibility and the security elements of the flexicurity strategy must be well defined
• The interaction between the flexibility and the security elements must be unambiguous with respect to trade-off(s), positive interactions and vicious circles.
• Mechanisms of compensation for potential gains and losses for different groups must be included in the strategy.
#2: Process• All relevant stakeholders (including those at the
local level) should take part in the process • The process must be transparent with respect to
the distribution of gains and losses • The political process should include political
guarantees that ensure the implementation of the flexicurity strategy over time.
• The flexicurity strategy should mobilize and link resources from different actors.
#3: Outcome
• The flexicurity strategy should in the long run improve the employment options and the quality of employment for all groups on the labour market.
• The flexicurity strategy should have an advantageous effect the distribution of welfare and living conditions in general.
• The flexicurity strategy should empower weak groups to cope with their situation
A hierarchy
• Three overarching principles
• A number of more specific guidelines/checklists
• Best practices (the toolbox..)