Gendered costs of austerity: The effects of welfare regime and government policies on employment across the OECD, 2000–13

an article by  Sidita Kushi (Tufts University, Massachusetts, USA) and Ian P. McManus (London School of Economics and Political Science, UK)
published in International Labour Review Volume 157 Number 4 (December 2018)

Abstract

This article proposes a thorough analysis of the gendered impact of government policies applied during the Great Recession on unemployment across 28 OECD countries following an empirical estimation using random effects modelling with data from 2000 to 2013 to test the influence of welfare systems.

Results point to a significant effect of welfare regime even beyond the crisis, primarily through social expenditure levels and public sector employment dynamics, which mainly affect women.

The detailed policy analysis highlights the need to look for alternatives to austerity policies, and the authors conclude with some suggestions in that regard.

Full text (PDF 31pp)

---

The curiously varied impact of recessions on political stability: New evidence

a column by Nathan Nunn, Nancy Qian and Jaya Wen for VOX: CEPR’s Policy Portal

Cultural values and beliefs have an impact on social and economic development, but the interplay between culture and political institutions is still not well understood.

This column examines the effect of trust on political stability in democratic and non-democratic regimes, specifically in the face of severe economic downturns.

It finds that democratic regimes with high levels of trust are much less likely to experience leader turnover than low-trust countries, while there is no effect among non-democracies, and that countries with higher levels of trust experience faster economic growth in the years immediately following a recession.

Continue reading

---

Recession, austerity and gender: A comparison of eight European labour markets

an article by Hélène Périvier (Observatoire français des conjonctures économiques (OFCE)) published in International Labour Review Volume 157 Number 1 (2018)

Abstract

The collapse in GDP brought about by the global economic crisis in 2008 affected female employment less than male employment, whereas austerity has been particularly harsh on women, a gendered impact described in the literature as “he‐cession to sh(e)‐austerity”.

This article analyses gendered trends in the labour markets of eight European countries, decomposing quarterly changes in labour participation of women and men and in employment by sector.

The “he‐cession to sh(e)‐austerity” scenario is not observed in all countries. Other channels through which austerity policies can jeopardize gender equality and women's rights are identified with reference to a typology of such policies.

Full text (PDF 37pp)

---

The growth of precarious employment in Europe: Concepts, indicators and the effects of the global economic crisis

an article by Tomás Gutiérrez-Barbararusa (Rey Juan Carlos University, Madrid, Spain) published in International Labour Review Volume 155 Issue 4 (December 2016)

Abstract

Since the 1970s, the reorganization of production and neoliberal “flexibilization” have made employment increasingly precarious in the developed economies.

Examining the concept of precarious employment, the author focuses on two of its dimensions – insecurity and poverty – which he uses to construct a “precariousness index”. Based on Eurostat data for 1995–2015, he then tracks the growth of precarious employment across the EU-15 and assesses the impact of the 2008 global economic crisis in this respect.

While precarious employment generally increased after the crisis, this trend was driven more by poverty in the most deregulated labour markets and more by insecurity in the southern European countries.

---

World of Work Report 2013: Repairing the economic and social fabric

Published by the International Institute for Labour Studies

Summary

The World of Work Report 2013 provides a comprehensive analysis of the current state of labour markets and social conditions around the world. It also projects employment trends and assesses the risk of social unrest.

The report points to an uneven employment picture, with emerging and developing economies performing better than the majority of advanced economies. Income inequalities continue to widen in advanced economies and although they have stabilised somewhat in large emerging and developing countries, they remain acute and progress in this area is still fragile.

The report analyses these trends and discusses the conditions necessary for putting job creation at the heart of policy making. It addresses the following questions:

• What are the challenges associated with an uneven job recovery from the global financial crisis? How have income inequalities evolved and what impact has this had on the middle class?
• Can minimum wages promote social justice and stimulate aggregate demand without dampening employment in developing countries? What is the scope in these countries for counteracting a double dip in growth and employment in advanced economies?
• How can productive investment be stimulated in order to create more and better jobs? And what are the financial reforms and corporate governance changes that would help to reinvigorate private sector investment?
• What are the trends in executive pay, and how do these compare with the evolution of the average worker’s earnings?
• How to achieve a shift to job-friendly policies and what is the role of the ILO in this endeavour?

This report draws attention to the need to restore the economic and social fabric, thereby laying a foundation for a sustainable recovery from the global crisis.

Full text (PDF 133pp)

---

Coping with the unemployment crisis in Europe

an article by Hedva Sarfati (Former Director, ILO Industrial Relations and Labour Administration Department; ISSA consultant on labour market and welfare reforms) published in International Labour Review Volume 152 Issue 1 (March 2013)

Abstract

Since the 1970s, Europe has been plagued by a chronic unemployment crisis, which has escalated with the current Great Recession.

The author discusses a number of relevant elements in this regard, including the extent to which social dialogue and social pacts have been successful in reforming labour markets and pension systems, the effect of active labour market policies and the characteristics of “resilient” economies. She concludes with the need to rethink social dialogue, social safety nets, the granting of loans – especially to SMEs – and the coordination of macroeconomic policies to increase labour demand.

Hazel’s comment:
I hoped I would be able to find a full text of this article but alas, …

---

Financing social security in the EU: Business as usual?

an article by Norman Wagner (Austrian Federal Chamber of Labour) published in International Labour Review Special Issue: The Crisis, Inequalities and Social Policy in the European Union Volume 151 Issue 4 (December 2012)

Abstract

This article assesses how well welfare models with different financing mechanisms cope with a major financial crisis.

It focuses on five EU countries, which represent different welfare models. It also analyses how the crisis and the associated stimulus or austerity measures changed financing, revealing a regressive impact.

It demonstrates that, in the short- or medium-term, contribution-based social systems have more stable public finances during a recession than tax-based systems. That said, the corporatist/continental welfare model seems most likely to remain stable in the long run, in so far as it focuses on keeping employment – the system’s main source of revenue – stable.

---