Henning Jørgensen Professor, Aalborg Universitet, CARMA [email protected] ,

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From learning to steering in Danish labour market policy - or from a beautiful swan to an ugly duckling? Henning Jørgensen Professor, Aalborg Universitet, CARMA [email protected] , Welfare States in Transition, Chicago 15th May 2009

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Henning Jørgensen Professor, Aalborg Universitet, CARMA [email protected] , Welfare States in Transition, Chicago 15th May 2009. From learning to steering in Danish labour market policy - or from a beautiful swan to an ugly duckling?. - PowerPoint PPT Presentation

Transcript of Henning Jørgensen Professor, Aalborg Universitet, CARMA [email protected] ,

From learning to steering in Danish labour market policy

- or from a beautiful swan to an ugly duckling?

Henning JørgensenProfessor, Aalborg Universitet, CARMA

[email protected],

Welfare States in Transition, Chicago 15th May 2009

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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

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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

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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

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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:

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”Flexicurity”

Job protection

Socialprotection

Low High

Low

High

UKUSA Italy

GermanySweden

Denmark

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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

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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

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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)

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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

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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

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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)

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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)

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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

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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

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Policy changes - assessment

Content

Continuity Break

Process

Incremental change

Reproductive adaptation

Gradual change

Abrupt/ Brusque change

Regime survival System transformation

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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

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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

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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)

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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

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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)

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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

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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

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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?