Advanced Search
MyIDEAS: Login

Sharing risk: on social risk management and the governance of labour market transitions

Contents:

Author Info

  • Schmid, Günther
Registered author(s):

    Abstract

    This is a paper based on the annual lecture in honour of Hugo Sinzheimer at November 10, 2005, Hugo-Sinzheimer-Institute at the University of Amsterdam. In 1928, Sinzheimer wrote an article entitled “Die Demokratisierung des Arbeitsverhältnisses,” (The Democratisation of the Employment Relationship). His references to unemployment insurance that had been enacted just one year earlier went beyond the participation of trade unions and employers in administration as an essential element of democratization. Sinzheimer put even more emphasis on another aspect of democratization, namely, the enlargement of the risksharing community to embrace all workers, indeed, the whole economy. The argument of the paper is that sharing risks through universal and state-guaranteed unemployment insurance is still as valid as in the time of Hugo Sinzheimer. There is no reason to roll back the welfare state. On the contrary, there are strong reasons to defend the principle of social insurance. By combining a kind of work-life insurance with soft forms of governance, this principle—that of “sharing risks”— can even be extended to include the new risks related to critical events during the life course. The argument is developed by answering the following questions: First, what are the new risks to which established insurance systems have to respond? Second, what are the advantages of social insurance compared to private savings? Third, how should we share for example the risks related to parenting and to continuing education and training? Fourth, how do we overcome risk-aversion to stimulate more individual risk-taking and thereby more responsibility? -- Dieses Papier basiert auf der jährlichen Vorlesung zu Ehren von Hugo Sinzheimer am 10. November 2005, Hugo-Sinzheimer-Institut der Universität Amsterdam. Sinzheimer schrieb 1928 einen Artikel über “Die Demokratisierung des Arbeitsverhältnisses”. In diesem Artikel hob er nicht nur die Beteiligung der Sozialpartner an der Verwaltung der Arbeitslosenversicherung, die gerade ein Jahr zuvor in Kraft getreten war, als einen Fortschritt der Demokratisierung hervor. Vielmehr betonte er einen anderen Aspekt der Demokratisierung, nämlich die Erweiterung der Risikogemeinschaft auf alle Arbeiter, ja auf die gesamte Wirtschaft. Das Argument dieses Papiers ist, dass eine universelle und staatlich garantierte Arbeitslosenversicherung nach wie vor gültig ist wie zu Zeiten Hugo Sinzheimers. Es gibt keine Gründe, den Wohlfahrtsstaat zurückzufahren. Es gibt sogar Gründe, das Prinzip der Sozialversicherung auf neue Risiken des Arbeitsmarktes auszudehnen. Durch die Kombination einer Art Arbeitslebensversicherung und weicher Formen von Steuerung kann das Prinzip solidarischer Risikoteilung auch auf die Einkommensrisiken im Zusammenhang mit kritischen Ereignissen im Lebenslauf angewendet werden. Dieses Argument wird durch die Beantwortung folgender vier Fragen entwickelt: Erstens, welches sind die neuen Risiken, auf die etablierte soziale Sicherungssysteme zu reagieren haben? Zweitens, welche Vorteile hat die Sozialversicherung gegenüber privatem Sparen? Drittens, wie sollen beispielsweise die Risiken im Zusammenhang mit Elternschaft und beruflicher Weiterbildung geteilt werden? Viertens, wie kann der verbreiteten Risikoaversion begegnet werden, um individuelle Risikobereitschaft und damit verbundene Verantwortung zu stimulieren?

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://econstor.eu/bitstream/10419/44015/1/51283444X.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Labor Market Policy and Employment with number SP I 2006-101.

    as in new window
    Length:
    Date of creation: 2006
    Date of revision:
    Handle: RePEc:zbw:wzblpe:spi2006101

    Contact details of provider:
    Postal: Reichpietschufer 50, 10785 Berlin, Germany
    Phone: ++49 - 30 - 25491 - 0
    Fax: ++49 - 30 - 25491 - 684
    Email:
    Web page: http://www.wzb.eu/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Muffels, Ruud & Wilthagen, Ton & van den Heuvel, Nick, 2002. "Labour market transitions and employment regimes: evidence on the flexibility-security nexus in transitional labour markets," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-204, Social Science Research Center Berlin (WZB).
    2. Hans-Werner Sinn, 1994. "A Theory of the Welfare State," NBER Working Papers 4856, National Bureau of Economic Research, Inc.
    3. Chapman, Bruce & Ryan, Chris, 2005. "The access implications of income-contingent charges for higher education: lessons from Australia," Economics of Education Review, Elsevier, vol. 24(5), pages 491-512, October.
    4. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
    5. Hans-Werner Sinn, 1995. "Social Insurance, Incentives, and Risk Taking," NBER Working Papers 5335, National Bureau of Economic Research, Inc.
    6. James Heckman & Carolyn Heinrich & Jeffrey Smith, 2002. "The Performance of Performance Standards," NBER Working Papers 9002, National Bureau of Economic Research, Inc.
    7. Agell, Jonas, 2001. "On the Determinants of Labour Market Institutions: Rent Seeking vs. Social Insurance," Research Papers in Economics 2001:12, Stockholm University, Department of Economics.
    8. Peter A. Diamond (ed.), 1999. "Issues in Privatizing Social Security: Report of an Expert Panel of the National Academy of Social Insurance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262041774, December.
    9. Pearson, Mark & Martin, John P., 2005. "Should We Extend the Role of Private Social Expenditure?," IZA Discussion Papers 1544, Institute for the Study of Labor (IZA).
    10. Agell, Jonas, 1999. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Economic Journal, Royal Economic Society, vol. 109(453), pages F143-64, February.
    11. A. B. Atkinson, 1999. "The Economic Consequences of Rolling Back the Welfare State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011719, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Schulze Buschoff, Karin, 2007. "Self-employment and social risk management: comparing Germany and the United Kingdom," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-103, Social Science Research Center Berlin (WZB).

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:zbw:wzblpe:spi2006101. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.