From learning to steering in Danish labour market policy - or from a beautiful swan to an ugly...
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Transcript of From learning to steering in Danish labour market policy - or from a beautiful swan to an ugly...
From learning to steering in Danish labour market policy
- or from a beautiful swan to an ugly duckling?
Henning JørgensenProfessor, Aalborg Universitet, CARMA
Welfare States in Transition, Chicago 15th May 2009
2
Activation as part of the ”modernization” of the welfare systems
Activation part of a new intervention paradigm
employment as goal and central 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
3
Expenditures on Labour market policy 2005
0 1 2 3 4 5
USA
J apan
UK
Canada
Italy
Ireland
Norway
Switzerland
Austria
Portugal
Spain
Sweden
France
Finland
Germany
Belgium
Netherlands
Denmark
Spending as percent of GDP
Active
Passive
4
Construction of activation systemsbased 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
5
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)
Macro-economic
policy
Wage policy
Collective agreements
The welfare state
Income security
Services and LMP
The social partners
The Nordic Approach:
7
”Flexicurity”
Job protection
Socialprotection
Low High
Low
High
UKUSA Italy
GermanySweden
Denmark
8
The Danish flexicurity system: not a model – only relationships
Flexiblelabourmarket
Socialsecurity
The primary axe of the Flexicurity model
• Strong rotation between jobs
• Low job security
• Quick structural adaptation
• Income security
• High percieved job security
Employment security
Activelabourmarket andeducationalpolicies
The social partners
9
Some basic figures for Danish flexicurity:”the security of the wings” (up to 2004)
Flexible labour market
Social security
ALMP
30 procent change jobs each year20 procent of the
workforce experience unemployment each year
11 procent in ALMP each year
CVT
13 percent of the workforce complete a CVT-courses each year
10
Danish LMP reform 1993/1994
* Content: - from rules to needs - individual action plans - activation offers (mostly education)
* Steering - regionalization - the social partners in pivotal positions
11OECD, Employment outlook, 2007.
Unemployment figures (%), 1994-2006
0
1
2
3
4
5
6
7
8
9
10
11
12
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Denmark Germany EU (average)
12
Denmark: the Phillips curve flattened out!
Source: ADAMs databank
0
5
10
15
20
25
Wag
e in
crease
(p
erc
en
tag
e)
0 2 4 6 8 10 12 14
Unemployment (percentage)
1956
19571958
1959
1960
1961
1962
19631964
1965
1966
196719681969
1970
1971
1972
1973
19741975
1976
1977 19781979 1980
1981
1982
1983
198419851986
1987
1988
198919901991
1992 19931994
19951996199719981999
200020012002
Labour market policy reform
13
New LMP reform of the new government:”More people to work” 2002/2003
Individual and flexible contacts with the unemployed persons
Job plan
Use of ”other actors”
Offers guidance and qualification trainee service wage subsidies
14
New structural reform 2007 - 2009
Towards one-tier system:Joint entrance for all kinds of unemployed people into
jobcentres(common for municipalities and public employment service)
From 14 to only 4 regions:(now mostly monitoring agencies)
From corporatist steering to state-municipality steering:
(reduced role of the social partners)
15
Danish ”employment policy” 2007-
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 (but still rights and dialogues)
Processes:* The social partners no longer in pivotal positions:
municipalities takes over decision-making responsibility
* coordination weakened, contractualisation in use
Polity:* schizophrenic mixture of control and competition (decentralized operations – centralized steering)
16
The Labour Market Steering System in Denmark 2007 - 2009
Minister of Employment
Regional service Region of employment
BER
RBR
Jobcentres (91)
B (77)
MS M
C (14) LBR
State financing unemployment benefits and efforts
Monitoring of effects and results
KBMunicipal financing of assistance and efforts
17
A new labour market steering system from 1.8.2009
Municipalities take over all responsibilities
Economic incentives to steer activities
Strong monitoring and intervention from the side of the state
18
Policy changes - assessment
Content
Continuity Break
Process
Incremental change
Reproductive adaptation
Gradual change
Abrupt/ Brusque change
Regime survival System transformation
19
Institutional recalibration of the system
Contractualization introduced at all levels
Performance management system and ”steering” as to results
New measurement system from 2007
Central standards and manuals
20
Evidence-based measurement system
Is partial: includes only some aspects of LMP (employment records)
Measures only on the supply side: is one-sided
Register last years performance: too static
The role of dialogues has been reduced
21
Consequences internally
The frontline people have a new role definition: agents for a ”behavioral” policy
Employees will experience de-professionalization
The PES is becoming a traditional bureaucracy (run by the municipalities)
22
Implementation depends on organizing principles
The labour market calls for shifting and dynamic interventions:
But the jobcentres are transformed into traditional bureaucracies!
Tasks
Technologies
Uniform Variable
Standardized Bureaucracy Professional organisation
Non-standardized Management Learning organisation
23
Internal behavioral consequenses:
”Wicked” problems redefined as ”tame” ones
Steet-level bureaucrats have less discretion
No further training and education in the system
Controlling the unemployed people: they need to learn how to handle their own situation and to reshape their attitudes (a moral-theraupeutic problem)
24
Danish policy change now more ”European” as to institutional reform
Policy design separated from policy implementation
MBO is subsituting law making and political regulation
Measurement og monitoring to help performance management (central steering)
Individualization and moral-therapeutic practices (case-management)
Contractualization
Quasi-markets and outsourcing of tasks from PES
Standardization of procedures and ways of operating
25
But: cooperative adaptation is still the key to good governance
Institutionalizing social dialogues
Placing responsibilities on actors
Developing common norms
Coupling mechanisms
Trust and learning
cooperation
trust
learning
resources
motivation
coupling mechanisms
norms
institutional set-upincentivesgoals
actors political system
coordination
cognition
27
LMP no longer ”owned” by the social partners
In LMP: Threats and sanctions to become dominant (paternalistic values introduced)
From qualification measures (learn-fare) to ”shortest possible way to a job” (work-first)
Organizational change from a learning system to central steering of a fully bureaucratized system
Leaving Danish flexicurity behind?
Danish LMP: from beautiful swan to an ugly duckling?