Sharing risk: on social risk management and the governance of labour market transitions
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 principlethat 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?
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: Reichpietschufer 50, 10785 Berlin, Germany|
Phone: ++49 - 30 - 25491 - 0
Fax: ++49 - 30 - 25491 - 684
Web page: http://www.wzb.eu/
More information through EDIRC
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.:
- Heckman, James J. & Heinrich, Carolyn J. & Smith, Jeffrey A., 2002.
"The Performance of Performance Standards,"
IZA Discussion Papers
525, Institute for the Study of Labor (IZA).
- Bruce Chapman & Chris Ryan, 2003.
"The Access Implications of Income Contingent Charges for Higher Education: Lessons from Australia,"
CEPR Discussion Papers
463, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- 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.
- 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.
- Agell, Jonas, 1999.
"On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance,"
Royal Economic Society, vol. 109(453), pages F143-64, February.
- Agell, Jonas, 1998. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Working Paper Series 1998:17, Uppsala University, Department of Economics.
- Agell, J., 1998. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Papers 1998:17, Uppsala - Working Paper Series.
- Mark Pearson & John P. Martin, 2005.
"Should We Extend the Role of Private Social Expenditure?,"
OECD Social, Employment and Migration Working Papers
23, OECD Publishing.
- 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).
- Sinn, Hans-Werner, 1995.
" A Theory of the Welfare State,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 97(4), pages 495-526, December.
- Jonas Agell, 2002.
"On the Determinants of Labour Market Institutions: Rent Seeking vs. Social Insurance,"
German Economic Review,
Verein für Socialpolitik, vol. 3(2), pages 107-135, 05.
- 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.
- Sinn, Hans-Werner, 1996.
"Social Insurance, Incentives and Risk Taking,"
Munich Reprints in Economics
19834, University of Munich, Department of Economics.
- Muffels, Ruud & Wilthagen, Ton & Heuvel, Nick van den, 2002.
"Labour Market Transitions and Employment Regimes: Evidence on the Flexibility-Security Nexus in Transitional Labour Markets,"
13301, University Library of Munich, Germany.
- 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).
- Siv Gustafsson & Eiko Kenjoh & Cécile Wetzels, 2002. "The labour force transitions of first-time mothers in Britain, Germany, the Netherlands and Sweden," Chapters, in: Labour Markets, Gender and Institutional Change, chapter 9 Edward Elgar Publishing.
- 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.
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 references are entirely missing, you can add them using this form.