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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"

  • Tangian, Andranik
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    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.

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    Paper provided by Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung in its series WSI Discussion Papers with number 149.

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    Date of creation: 2007
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    Handle: RePEc:zbw:wsidps:149
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    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, 05.
    2. Truger, Achim & Hein, Eckhard, 2004. "Macroeconomic co-ordination as an economic policy concept : opportunities and obstacles in the EMU," WSI Discussion Papers 125, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    3. Hein, Eckhard, 2003. "Die NAIRU: Eine post-keynesianische Interpretation," WSI Discussion Papers 113, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    4. Tangian, Andranik S., 2005. "Composite indicator of German regional policy and its use for optimizing subsidies to regional labour markets," WSI Discussion Papers 138, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    5. Tangian, Andranik S., 2004. "Defining the flexicurity index in application to European countries," WSI Discussion Papers 122, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    6. Seifert, Hartmut, 2004. "Flexibility through working time accounts : reconciling economic efficiency and individual time requirements," WSI Discussion Papers 130, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    7. Eckhard Hein & Thorsten Schulten & Achim Truger, 2004. "Wage trends and deflation risks in Germany and Europe," Macroeconomics 0412008, EconWPA.
    8. Tangian, Andranik S., 2004. "Liberal and trade-unionist concepts of flexicurity: Modelling in application to 16 European countries," WSI Discussion Papers 131, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    9. Eckhard Hein & Thorsten Schulten, 2004. "Unemployment, wages and collective bargaining in the European Union," Macroeconomics 0412006, EconWPA.
    10. Tangian, Andranik, 2006. "Monitoring flexicurity policies in Europe from three different viewpoints," WSI Discussion Papers 145, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    11. Schulten, Thorsten, 2004. "Foundations and Perspectives of Trade Union Wage Policy in Europe," WSI Discussion Papers 129, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
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