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Purpose – European social protection arrangements have undergone significant transformations since the mid-1970s. However, while the existing literature has focused on reforms in public welfare arrangements, an analysis of both public and private social protection is needed to understand the social protection status of European workers. Recent reforms have led to varying degrees of social protection dualism between insiders and outsiders. After showing the existence of dualization processes in Germany, France, and the United Kingdom, the chapter explores the structural and political sources of these processes.

Methodology/approach – We conduct a comparative historical analysis and process tracing of policy change and its drivers in three major European political economies. A combination of qualitative evidence and quantitative measurements are used.

Findings – We find that de-industrialization has contributed to unsettling the skill composition that sustained both public and private postwar social protection arrangements. This development has affected the preferences of employers, for whom cost containment has become a critical issue. Furthermore, we show that the capacity of employers to realize their preferences depends on the governance structures of social policy arrangements and on domestic political institutions.

Originality/value – The chapter suggests new perspectives on employers' preferences in Coordinated and Liberal political economies which differ from those which have informed the Varieties of Capitalism approach.

This “Rapport” proposes to examine the function and effect of British social law in the context of the employment/unemployment debate. This debate is a most significant one for it has not only British, but also European and International dimensions.

The new economic-policy regime in Sweden in the 1990s included deregulation, central-bank independence, inflation targets and fiscal rules but also active labour market policy and voluntary incomes policy. This chapter describes the content, determinants and performance of the new economic policy in Sweden in a comparative, mainly Nordic, perspective. The new economic-policy regime is explained by the deep recession and budget crisis in the early 1990s, new economic ideas and the power of economic experts. In the 1998–2007 period, Sweden displayed relatively low inflation and high productivity growth, but unemployment was high, especially by national standards. The restrictive monetary policy was responsible for the low inflation, and the dynamic (ICT) sector was decisive for the productivity miracle. Furthermore, productivity increases in the ICT sector largely explains why the Central Bank undershot its inflation target in the late 1990s and early 2000s. The new economic-policy regime in Sweden performed well during the global financial crisis. However, as in other OECD countries, the moderate increase in unemployment was largely attributed to labour hoarding. And the rapid recovery of the Baltic countries made it possible for Sweden to avoid a bank crisis.

Economic theory predicts that unemployment benefits may increase expected income and reduce its volatility, thereby attracting immigrants to countries which implement such programs. This article aims to explore whether and how changes in countries’ unemployment benefit spending (UBS) affect immigration.

Data are collected for 19 European countries over the period 1993‐2008. The relationship between immigration flows and UBS is first tested using the OLS technique. Instrumental variable (IV) and generalised method of moments (GMM) are then used to address reverse causality.

While the OLS estimates suggest the existence of a moderate within‐country welfare magnet effect for the inflows of non‐EU immigrants, the IV approach reveals that the impact is substantially smaller and statistically insignificant when GMM techniques are implemented.

Since information on the immigrants’ country of origin is not available, it is not possible to exclude that for immigrants coming from certain areas, unemployment benefits constitute a strong incentive to immigrate. This hypothesis awaits further research, once detailed data is available.

This paper complements previous literature on immigration and welfare by exploring the endogenous nature of welfare spending. The empirical results provide insights into the interaction between immigration and welfare policies.

This study attempts to analyze the various factors which may have led an individual living in 1995 and 1996 in the canton of Geneva, Switzerland, from regular employment to reliance on social welfare via a stage where unemployment benefits are received and another one where the individual may have a temporary job financed by local public authorities. The individual characteristics affecting the transition from one status to the other are analyzed using a logit model while the main features of the groups constituting the subpopulations of individuals holding temporary jobs and of those obtaining social assistance are determined on the basis of cluster analysis.

This chapter provides an assessment of the effects of the Great Recession on the Italian labour market. Two-thirds of the decrease in employment taking place during the 2008:4 to 2009:4 period were due to the fall in job-finding probabilities, while transitions out of employment significantly increased only for employees with flexible contracts. According to micro-level multiple stochastic imputations coherent with the evolution of the employment rate, income losses related to job terminations will be partially offset by the highly fragmented income support safety nets available. A stress test shows that income stabilization offered is pro-cyclical, while labour income inequality is driven by changes in employment: inequality among the employed seems to be rather insensitive to the composition of employment.

The purpose of this paper is to examine the attitudes of street-level bureaucrats from different agencies and sectors of the Finnish welfare state, namely municipal social workers, diaconal workers of the Lutheran church, benefit officials of the Social Security Institution and officials of private unemployment funds.

The authors are interested in the following questions: What are the attitudes of street-level bureaucrats towards the labour market allowance? What is the impact of individual characteristics? The study utilised the unique national survey data of different groups of street-level bureaucrats from the year 2011 (total N=2,313). The dependent variables focus on legitimacy of the basic level of labour market allowance and sanction policies. Analyses are built around five independent variables which measure professional, personal interest and ideological factors.

There are differences both between and within groups of Finnish street-level bureaucrats with regard to their attitudes concerning the labour market allowance. Social and diaconal workers believe more often than officials that the level of labour market allowance is too low, and offer less support for the idea that an unemployed person should take any job that is offered or have their unemployment security reduced. The results show that the attitudes of bureaucrats are explained by length of work history, economic situation and ideological factors.

There have been very few analyses comparing attitudes among different groups of bureaucrats. The present study is intended to fill this gap in the literature.

The efficient functioning of the labour market is an important factor that affects long-term economic growth. The interaction of supply and demand on the labour market is influenced by institutions which change the motivations and behaviour of economic actors and, ultimately, the flexibility of the labour market. There is no consensus in the literature on the effect these institutions have on labour market outcomes. This chapter focuses on a set of selective labour market institutions (employment protection legislation, minimum wages, unemployment benefits, labour taxation, trade unions and active labour market policies), compares their relevance to other European Union (EU) countries and through the lens of the Beveridge curve it tries to evaluate their impact on effectiveness of the Czech labour market. The international comparison shows that most of the considered institutions/regulations do not reach such importance (except employment protection legislation) and that they have a significant negative effect on labour market outcomes. Even the model of the Beveridge curve does not indicate that the Czech labour market is characterised by rigidities that would impair the effectiveness of a matching process at the aggregate level.

The purpose of this paper is to shed light on transitions from the state of unemployment to that of employment and of inactivity in Italy and Spain.

First, the paper investigates the determinants of unemployment outflows in these two Mediterranean labour markets. Then, the paper examines discrepancies and similarities between specific outflow determinants, especially the interactions between gender and marital status, by comparing results obtained across countries.

The findings of the paper suggest that gender and marital status influence the probability of unemployment outflows in both countries, although not in the same way, especially with reference to marital status. Discrepancies also emerge in relation to the role of geographical area of residence.

International comparisons of unemployment outflows are rather new in the literature, and as far as we know none have been performed using European Union Statistics on Income and Living Conditions data. Further, although studies quite often examine the issue of gender-related labour mobility using the European Community Household Panel survey that took place in the 1990s (Arulampalam et al., 2007; Garcia Pérez and Rebollo Sanz, 2005; Theodossiou and Zangelidis, 2009), one of the main contributions of this paper is that it provides a systematic examination of the issue, considering the influence of gender and marital status differences on patterns of unemployment outflows to employment and inactivity.

This paper presents a general survey of the Swiss economy. It emphasises the various factors that have been put forward to explain the very low unemployment rate recorded in Switzerland up to the beginning of the 1990s. It also analyses the factors which may be held responsible for the dramatic reversal of the Swiss labour market situation, by considering the modification in the employers’ and workers’ behaviour in Switzerland as well as the changes observed in the structure of the foreign labour force. It comes to the conclusion that the unemployment observed since 1991 is not simply a consequence of a deterioration in the functioning of the Swiss labour market compared with earlier periods, but rather a result of changes in immigration policies and also the reflection in the statistics of a truer picture of the labour market imbalance created by the restructuring of the economy.