IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/1034-en.html
   My bibliography  Save this paper

Labour Market, Welfare Reform and Inequality in the United Kingdom

Author

Listed:
  • Christophe André

    (OECD)

  • Clara Garcia

    (OECD)

  • Giulia Giupponi
  • Jon Pareliussen

    (OECD)

Abstract

Employment has risen by more and unemployment has risen less than expected, given the path of output. Nevertheless, long-term and youth unemployment and involuntary part-time work are high. A polarised labour market risks worsening income inequality, which is high by OECD standards, despite a recent and likely temporary decline. The UK welfare system is an essential safety net, which needs to promote employment, while protecting the most vulnerable. The reformed welfare system, Universal Credit, and the employment programme for disadvantaged workers, Work Programme, will generally improve work incentives and provide support for return to work, but need to be refined. Skill deficiencies are holding back employment and fostering inequality, as low education achievements penalise children from lower socio-economic backgrounds. Vocational training needs to be strengthened and cooperation with employers reinforced. Transition from education to work can prove challenging, requiring more attention to the integration of university graduates into the labour market. Marché du travail, réforme de la protection sociale et inégalités au Royaume-Uni L’emploi a progressé plus et le chômage a augmenté moins que prévu au regard de l’évolution de la production. Néanmoins, le chômage de longue durée et le chômage des jeunes, ainsi que le travail à temps partiel involontaire, sont élevés. La polarisation du marché du travail risque d’accentuer les inégalités de revenu, qui sont très marquées par rapport aux autres pays de l’OCDE, malgré une atténuation récente et probablement temporaire. Le système de protection sociale du Royaume-Uni constitue un filet de sécurité essentiel, qui doit favoriser l’emploi tout en protégeant les plus vulnérables. Le système réformé de protection sociale (Universal Credit) et le programme d’emplois pour les travailleurs défavorisés (Work Programme) renforceront généralement les incitations à travailler et faciliteront le retour à l’emploi, mais des améliorations sont nécessaires. L’insuffisance des qualifications bride l’emploi et creuse les inégalités, de faibles niveaux d’instruction pénalisant les enfants issus de milieux socio-économiques défavorisés. Il est indispensable de développer la formation professionnelle et la coopération avec les employeurs. Le passage de l’école à l’emploi est parfois difficile, d’où la nécessité de prêter une plus grande attention à l’intégration des diplômés de l’université sur le marché du travail.

Suggested Citation

  • Christophe André & Clara Garcia & Giulia Giupponi & Jon Pareliussen, 2013. "Labour Market, Welfare Reform and Inequality in the United Kingdom," OECD Economics Department Working Papers 1034, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1034-en
    DOI: 10.1787/5k49lcnl9cr8-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/5k49lcnl9cr8-en
    Download Restriction: no

    File URL: https://libkey.io/10.1787/5k49lcnl9cr8-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

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


    Cited by:

    1. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2019. "Exploring changes in the employment structure and wage inequality in Western Europe using the unconditional quantile regression," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(2), pages 249-304, May.

    More about this item

    Keywords

    activation policies; childcare costs; Crédit Universel; formation professionnelle; frais de garde d'enfants; incitation à travailler; inequality; inégalités; labour market; marchés du travail; politiques d’activation; productivity; productivité; qualification de la main d’oeuvre; Royaume-Uni; réforme de la protection sociale; United Kingdom; Universal credit; vocational training; welfare reform; workforce skills;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:1034-en. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.