Documents Nelson, Moira 2 results

"In Esping-Andersen's influential work decommodification appears as the central characteristic of the welfare state, and efforts to decommodify labour are posited to be the main goal of social democracy. Since decommodification is defined as exit from the labour market with little or no loss of income, social democrats' emphasis on decommodification clashes with another purported goal of social democracy, high labour force participation. Drawing on research demonstrating the divergent employment effects of various decommodifying social policies, we resolve the existing paradox by showing that social democratic parties are supportive of decommodifying social policies insofar as these policies do not reduce aggregate levels of employment. Pooled time series analysis of employment-impeding policies (long-term unemployment replacement rate, social security and payroll taxes, and employment protection) suggests that they are associated with Christian democracy rather than social democracy. Instead, we find that social democracy is a key determinant of employment-friendly policies, such as active labour market spending and short-term unemployment replacement rate. Given the radically divergent employment effects of different types of decommodifying social policies and the importance of employment-friendly policies for the viability of generous welfare states, our analysis further underlines the future viability of the social democratic model."

"Active labor market policies, defined as programs for marginalized workers that improve their chances of finding stable jobs, have grown in importance since roughly 1980 due to high levels of unemployment. This paper examines the role of private firms in active labor market policies in three generous welfare states—Denmark, Germany and the Netherlands. Whereas the participation of private firms in the implementation of active labor market policies enhances the efficiency of these policies, firms' increased bargaining power within the national policy-making arena raises questions about their continued willingness to adjust their preferences in order to accommodate public concerns. The results suggest that the state plays a fundamental role in building firm support for active labor market policies, although employer organizations do influence firms' participation in these programs."