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Flexibility-Flexicurity-Flexinsurance: Response to the European Commission's Green Paper "Modernising Labour Law to Meet the Challenges of the 21st Century"

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  • Tangian, Andranik

Abstract

The paper contains both critical remarks on and constructive suggestions to Green Paper: Modernising labour law to meet the challenges of the 21st century of the European Commission (2006a) which promotes flexicurity policies, that is, relaxing the employment protection legislation while providing advances in employment and social security for flexible workforces, like fixed-term, part-time and agency workers, or self-employed. The default assumption, that relaxing labour laws can be compensated by these advances, is criticised. These measures are regarded as too vague and insufficient, as also demonstrated in our previous study with empirical evidence. Therefore, some additional measures are proposed to counterbalance the actual flexibilization of employment relations, including (1) flexinsurance, a kind of progressive flexibilization tax, meaning that the employer's contribution to social security should be proportional to the flexibility of the contract/risk of becoming unemployed, (2) elements of the basic minimum income model, (3) constraining financial markets, as well as (4) developing adequate policy monitoring/evaluation instruments. It is argued that all of these meet interests of social partners and solve contradictions between such European policies as flexicurity, make work pay, welfare-state policy, and civil-society policy. Finally, we provide specific thoughts to 14 questions posed by the Green Paper.

Suggested Citation

  • Tangian, Andranik, 2007. "Flexibility-Flexicurity-Flexinsurance: Response to the European Commission's Green Paper "Modernising Labour Law to Meet the Challenges of the 21st Century"," WSI Working Papers 149, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
  • Handle: RePEc:zbw:wsidps:149
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    File URL: https://www.econstor.eu/bitstream/10419/21595/1/p_wsi_diskp_149_e.pdf
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    References listed on IDEAS

    as
    1. Eckhard Hein, 2007. "Interest Rate, Debt, Distribution And Capital Accumulation In A Post-Kaleckian Model," Metroeconomica, Wiley Blackwell, vol. 58(2), pages 310-339, May.
    2. Eckhard Hein & Achim Truger, 2004. "Macroeconomic co-ordination as an economic policy concept - opportunities and obstacles in the EMU," Macroeconomics 0408011, EconWPA.
    3. Eckhard Hein & Thorsten Schulten, 2004. "Unemployment, wages and collective bargaining in the European Union," Macroeconomics 0412006, EconWPA.
    4. Tangian, Andranik S., 2004. "Liberal and trade-unionist concepts of flexicurity: Modelling in application to 16 European countries," WSI Working Papers 131, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    5. Truger, Achim, 2004. "Verteilungs- und beschäftigungspolitische Risiken aktueller Steuerreformkonzepte: Eine Analyse mit Steuerbelastungsvergleichen für konkrete Haushaltstypen," WSI Working Papers 120, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    6. Josten, Stefan Dietrich & Truger, Achim, 2003. "The political economy of growth and distribution: A theoretical critique," WSI Working Papers 111, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    7. Tangian, Andranik, 2006. "Monitoring flexicurity policies in Europe from three different viewpoints," WSI Working Papers 145, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    8. Truger, Achim, 2003. "Germany's Poor Economic Performance in the Last Decade: It's the Macroeconomy, not Institutional Sclerosis," WSI Working Papers 118, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    9. Seifert, Hartmut, 2004. "Flexibility through working time accounts : reconciling economic efficiency and individual time requirements," WSI Working Papers 130, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
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    12. Tangian, Andranik S., 2005. "Composite indicator of German regional policy and its use for optimizing subsidies to regional labour markets," WSI Working Papers 138, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
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    15. Tangian, Andranik S., 2004. "Defining the flexicurity index in application to European countries," WSI Working Papers 122, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
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    More about this item

    Keywords

    Flexicurity; labour market flexibility; social security; labour law; European employment strategy; Green Paper;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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