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Portraits of Labor Market Exclusion presents "profiles" or "portraits" of individuals who have limited labor-market attachment. It is widely accepted that those with limited attachment to the labor market are a highly heterogeneous group (including, for instance, recent job losers, long-term unemployed, school leavers with no labor-market experience, those close to retirement age, or people with caring responsibilities), and that understanding their circumstances and potential barriers is an essential prerequisite for designing and implementing a tailored and effective mix of policy support and incentives. The report takes a comprehensive view, focusing on both the labor market attachment of a country's out-of-work population and the social assistance package and poverty profile of the same segment of the population. In essence, the report looks at individuals through the lenses of both poverty/welfare status and labor market indicators, and, in doing so, the portraits helps move the dialogue from a purely labor market-centric view to a broader dialogue that includes social policy as a whole. This is an important shift; for instance, social protection programs, such as family benefits and maternity benefits, and broader social policy issues such as retirement ages, often have a great impact on who remains inactive. Specifically, the report presents portraits of the out-of-work population of six countries (Bulgaria, Estonia, Greece, Hungary, Lithuania and Romania) in terms of distance from the labor market, human capital, and labor supply conditions, as well as demographic conditions. The analysis relies on the European Union Statistics of Income and Living Conditions (EU-SILC) surveys for the years 2007 to 2011. Latent class analysis methodology allows multidimensional profiling of the out-of-work population, and identifies classes or groups of out-of-work individuals that are as homogeneous as possible within each class according to a set of observable characteristics, and as distant as possible between classes. Consequently, this analysis provide a much richer glimpse of the very different barriers to labor market integration that these various groups experience, considerably augmenting the limited amount of information contained in traditional descriptive statistics.
The growing economic fissures in the societies of Europe and Central Asia between generations, between insiders and outsiders in the labor market, between rural and urban communities, and between the super-rich and everyone else, are threatening the sustainability of the social contract. The institutions that helped achieving a remarkable degree of equity and prosperity over the course of several decades now face considerable difficulties in coping with the challenges presented by these emerging forms of inequality. Public surveys reveal rising concerns over inequality of opportunity, while electoral results show a marked shift to populist parties that offer radical solutions to voters dissatisfied with the status quo. There is no single solution to relieve these tensions, and attempts to address them will vary considerably across the region. However, this publication proposes three broad policy principles: (1) promote labor market flexibility while maintaining protection for all types of labor contracts; (2) seek universality in the provision of social assistance, social insurance, and basic quality services; and (3) expand the tax base by complementing progressive labor-income taxation with taxation of capital. These principles could guide the rethinking of the social contract and fulfil European citizens’ aspirations for growth and equity.
The labour markets of OECD and emerging economies are undergoing major transformations. The widespread slow-down in productivity and wage growth and high levels of income inequality in many countries are coupled with structural changes linked to the digital revolution, globalisation and ...
Marx predicted in Capital (1867) that as capitalism became global, patterns of work would be transformed, and workers would need to develop versatility, flexibility, and mobility. This 'general law of social production', as he called it, is now in evidence all around us, in global value chains, 'zero hours' contracts, and contract work organised through digital platforms. It results from competition between capitalists, scientific and technological revolutions in production, and incessant advances in the division of labour as production processes are broken down into ever smaller steps. This book documents the leading roles of the Paris-based Organisation for Economic Cooperation and Development and the Washington-based World Bank as advocates of these developments. They do not, as generally supposed, simply represent the interests of the advanced economies or the 'West' and their transnational corporations. They promote a single global model of capitalist development, without limits and on a genuinely global scale. It calls upon all states to 'adjust' continually to the structural and social demands of competitiveness, which they see as essential to the global hegemony of capital over labour. The OECD and the World Bank propose policies that give girls and women equal access to education and paid work, reform welfare to 'make work pay', introduce flexible labour contracts that make 'hiring and firing' easier, focus education on skills that boost employability, and draw workers in the developing world from the 'informal' sector into the formal sector, where they can be more productive. This is the politics of global competitiveness.
In Hungary, women are much less likely than men to be in paid work. This report analyses recent reforms and explores potential policy actions in the areas of early childhood education and care, parental leave and flexible working arrangements, which could provide women - and especially mothers of very young children - with better access to paid work.
Greece’s economy had been expanding by nearly 2% for over three years before the COVID-19 shock. Structural reforms, high primary budget surpluses and debt measures underpinned Greece’s recovery and rising confidence. Then the COVID-19 pandemic struck, abruptly interrupting the recovery and adding new challenges to raising inclusiveness, competitiveness and growth.
This report on Bulgaria is the eighth country study published in a series of reports looking into how policies connect people with jobs. It provides a detailed analysis of Bulgaria’s inactive and unemployed population and identifies groups of people who would benefit from measures and services provided by Bulgaria’s Public Employment Service.
In Central and Eastern European countries, inequalities for Roma families living in marginalized communities start early and are striking. Some of these inequalities reflect hard-wired family circumstances such as being born in poverty. Others reflect lack of opportunities such as limited access to those basic goods and services that are necessary not only for realizing one's potential in life, but also for living with dignity. Gaps between Roma and non-Roma widen over the lifecycle in a way that reinforces and perpetuates disadvantage and translates into significantly unequal outcomes, despite the fact that Roma report having similar aspirations to those of their non-Roma neighbors. Promoting equal opportunities for disadvantaged Roma is not only an imperative for societies that want to call themselves fair, but it is also a smart economic choice, especially in those countries where populations are aging rapidly. Investing early, with a particular emphasis on supporting healthy and cognitive development for disadvantaged Roma children, is likely to go a long way in promoting fair chances. However, leveling the playing field in childhood is likely not enough: disadvantaged Roma continue being exposed to unequal opportunities at key nodes in their lives, such as when pursuing education or when looking for a job. Therefore, it is as important that a broader set of policies address some of the circumstances in which a large share of Roma children grow up, including access to employment and decent living conditions for their families. Implementing interventions that help overcome these interrelated barriers will require strong ownership at the national level, coordinated policies across different ministries and government levels, and an integrated delivery system that is grounded in approaches that are customized to local conditions and implemented in a participatory manner. Good practices in Europe and elsewhere show that inclusion of the most disadvantaged - including many Roma - is possible and the current programming cycle for European Funds represents a unique opportunity to fund such interventions.