Globalization and the Welfare State Overview

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the characteristic of the 'exclusionary' model of labor market flexibility?

Encourages a high level of training for routine-manual labor

Promotes equal employment opportunities

Guarantees job security for all workers

Creates a divide between insiders and outsiders (correct)

In liberal countries, labor market flexibility is often viewed as what kind of opportunity for workers?

An increase in job training programs

A stepping stone to better employment (correct)

A guaranteed permanent position

A way to reduce employment risks

What percentage of routine-manual labor workers experience 'infinite insecurity' according to the listed categories?

8.0%

15.8%

6.0%

12.2% (correct)

Which hypothesis suggests that economic conditions lead to increased demand for spending on job loss compensation?

Compensation hypothesis Signup and view all the answers

Which of the following describes the notion of 'flexicurity'?

A model combining labor market flexibility with adequate social protection Signup and view all the answers

What is a common feature of conservative-corporatist welfare states regarding labor market dualization?

Exclusionary practices leading to a significant insider-outsider divide Signup and view all the answers

What percentage represents the 'fortunate fixed-term' category among routine-manual labor workers?

8.0% Signup and view all the answers

Which of the following outcomes has been associated with the increased power of capital over labor in the labor market?

Worsening labor conditions and precarious employment Signup and view all the answers

What does dualization in the labor market primarily refer to?

A division between high-skilled and low-skilled workers Signup and view all the answers

Which of the following is not a form of labor market flexibility?

Guaranteed full-time contracts Signup and view all the answers

How does labor market flexibility contribute to rising income inequality?

By facilitating the hiring of temporary and part-time workers Signup and view all the answers

What is a consequence at the individual level of labor market flexibility?

Decline of the Standard Employment Relationship Signup and view all the answers

What role does the welfare state play in the context of dualization?

Helps to make lower-skilled workers more employable through social policies Signup and view all the answers

Which of the following describes a characteristic of non-standard employment?

Limited welfare entitlements and lack of job security Signup and view all the answers

What is a likely outcome of increased labor market flexibility?

Safeguards the economy from market risks Signup and view all the answers

What does the process of social investment within the welfare state aim to achieve?

Improve the skill set of workers to enhance employability Signup and view all the answers

What term describes the process where certain segments of the labor market become less inclusive, creating a divide between insiders and outsiders?

Downward dualization Signup and view all the answers

Which of the following is NOT a factor contributing to the process of dualization?

Increased labor demand Signup and view all the answers

What does 'recommodification' refer to in the context of dualization?

Transforming welfare states to be more market-oriented Signup and view all the answers

What best describes the impact of globalization on social risks, particularly concerning class and life course?

It broadens class risks and exacerbates social polarization. Signup and view all the answers

What is a consequence of the downward dualization process?

Greater stratification of class risks Signup and view all the answers

In what manner has the welfare state changed in response to dualization?

It has restricted horizontal redistribution to insiders. Signup and view all the answers

What is meant by the term 'wage flexibilization' in the context of labor markets?

Variable wages based on market demands Signup and view all the answers

Which demographic is most likely to be considered as 'outsiders' in the dualization framework?

Young workers in temporary or low-skilled positions Signup and view all the answers

How does active labor market policy (ALMP) relate to social protection in the context of dualization?

It promotes social reintegration into the workforce. Signup and view all the answers

Study Notes

Globalization & the Welfare State

Globalization has led to changes in labor market flexibility, social investment, and welfare state dualization.
The lecture discusses the role of the labor market, including flexibilization, and the role of the welfare state, considering retrenchment, expansion, and restructuring.
The presentation explores the concept of "dualization" within this context.

Globalization and Income Distribution

Globalization has increased over time, as measured by indicators like trade openness.
The distribution of global income has also changed, with data from LCT3 & SEM3 showing variations across income percentiles.

In the West

Recent trends within Western countries show slow economic growth.
Income inequality within countries has increased, and lower-income groups are struggling.
Data presented in figures show a rise in Gini coefficients indicating increased income inequality.

Explaining Rising Inequality

Disposable income is derived from labor market income, less taxes and contributions, and social transfers.
Labor market changes, such as greater flexibility, can influence wage inequality and hiring practices.
Welfare state changes, influencing policies like active labor market policies or stricter social protection, also impact inequality.

Labour Market Flexibility

Globalization has led to a shift from industrial to post-industrial knowledge-based labor markets.
Offshore outsourcing has contributed to long-term structural unemployment, particularly among low-skilled workers.
Solutions to these issues involve labor market flexibility to allow companies quick responses to market changes, decreasing macro economic risks, and safeguarding investments in countries.
Flexibility takes various forms, including outsourcing, functional adaptation, wage adjustments, numerical change, and temporal adaptation.

Labour Market Flexibility - Extent and Location

More than half of all jobs created since 1995 have been non-standard jobs, differing across countries.
Fixed-term contracts have increased over time, varying significantly across countries.
Countries display different levels of EPL (Employment Protection Legislation). EPL indexes are correlated with the share of temporary employment.

Labour Market Flexibility - Risk

The prevalence of non-standard employment is a concern.
The study examines whether non-standard employment is a stepping stone or a detrimental aspect of the labor market.
The presentation examines how different aspects of non-standard employment correlate with income levels. The data looks at income insecurity versus income security.
'Exclusionary' vs. 'integrative' employment strategies are analyzed in the context of routine manual jobs.

Welfare State Response

Traditional views on welfare state response, including efficiency and compensation hypotheses, are examined in the context of their suitability.
The presentation argues that these older perspectives are overly simplistic and do not fully consider the dynamic interaction between globalization, the welfare state, and employment trends.
Countries that are high on globalization index show a correlation to high social spending.

Globalization and Welfare State: Impact and Variations

Researchers like Busemeyer (2009) and Nam (2020) study dynamic impacts and variations.
Busemeyer's research analyzes the impact of globalization on welfare spending over time.
Nam's analysis focuses on how welfare states compensate for distributional consequences of globalization, such as rising income inequality.

Welfare State Outcomes

Studies indicate that the effects of globalization can vary significantly across countries.
Results of analyses show positive effects of globalization on market income inequality, with lesser effects on disposable income inequality. Negative effects from welfare generosity are also observed.
The effect of globalization on inequalities is also influenced by welfare states.

Dualization

Dualization describes an incremental decline in inclusivity within labor markets and social insurance systems.
It’s understood as a process of "1000 cuts" over time rather than a sudden restructuring.
Factors contributing to this process include globalization, population aging, and others.
Studies detail how welfare state origins, based on contributions and/or non-contributions from individuals, and associated social benefits can influence dualization.

Consequences and Variations

Social polarization between winners and losers of globalization is a significant consequence.
Variations in welfare state generosity among countries are analyzed.
This shows both the impact of globalization's effects and the differing responses of welfare states to those impacts.
Studies identify variations in policies, specifically between countries with more/less generous unemployment policies, and their impact on inequality.

Conclusion and Summary

The impact of globalization on social risks has been primarily indirect, influenced through various interactive processes in differing countries and cultures.
Existing inequality structures may be intensified due to globalization, potentially undermining the social contract that supports welfare systems.
The need for a new social contract is proposed, to incorporate more global coordination to adequately address globalization related issues, yet this may be difficult to achieve.
A revitalized discussion and understanding of 'dualization' in terms of how this process influences social risks due to globalization interactions within and across differing welfare states is highlighted.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the impact of globalization on the welfare state, examining changes in labor market flexibility, social investment, and income distribution. It also discusses the concept of dualization and recent trends in income inequality, particularly within Western countries. Participants will delve into data reflecting the changing dynamics of global income and welfare policies.