U09071

Stanley Fong
28 June 2006
Lecture
Lecture 3:
3: Households
Households and
and
labour
labour supply
supply
Volume of employment
Differences in patterns of labour
demand and supply
Welfare capitalism
Employment systems and welfare
regimes
Employment systems and gender
regimes
Volume
Volume of
of employment
employment
Age of entry into employment
Impact of marriage and motherhood
Retirement
Change and continuity
Differences
Differences in
in patterns
patterns of
of labour
labour
demand
demand and
and supply
supply (1)
(1)
The role of welfare regimes-perspective 1
Source of inefficiency or interference in the
market, creating unnecessary levels of
unemployment
Too high levels of public expenditure and
taxation, creating artificial barriers to
participation in the labour market
Provide tax transfers to families to enable
mothers to stay at home
Provide generous provision of childcare and
elder care services
 Differences
Differences in
in patterns
patterns of
of labour
labour
demand
demand and
and supply
supply (2)
(2)
The role of welfare regimes-perspective 2
Sees differences in welfare state regimes as
part of the development of divergent forms of
capitalism.
The particular path of development of
divergent capitalisms adds to the richness and
complexities of the world economy and gives
rise to different types of societies, with different
strengths and weaknesses.
Differences
Differences in
in patterns
patterns of
of labour
labour
demand
demand and
and supply
supply (3)
(3)
Forms of welfare state regimes
Reflects fundamental differences in state,
family and market relations
Three worlds of welfare capitalism
Social democratic model
Neo-liberal model
Corporatist model
Welfare
Welfare capitalism
capitalism (1)
(1)
Decommodification
The extent to which the state welfare
system provided citizens with income
support that was independent of the market.

Where labour is commodified, citizens have

to sell their labour on the labour market for
whatever they can get, under whatever
conditions of work prevail.
Welfare
Welfare capitalism
capitalism (2)
(2)
SociaI democratic model
The state provides all citizens with rights to welfare
benefits, but takes action to encourage high
participation in employment by all fit adults.
The state assumes responsibility for at least part of
the care requirements of the elderly and children,
providing this care through direct public provision of
services.
Facilitates the participation of women in the wage
labour market, both by providing care services and
by generating a high demand for female labour in
public services.
Welfare
Welfare capitalism
capitalism (3)
(3)
Neoliberal welfare model
Regards the individual or the family as having the
responsibility of providing care; as such it is
indifferent to whether - the care is provided through
domestic or private market-based provision.
Identified as a private consumption choice,
although dependent on the relative cost of buying
services in the market compared to expected returns
from wage employment.
A high level of female participation
increased family instability
decreasing real earnings levels among prime-age men
Welfare
Welfare capitalism
capitalism (4)
(4)
Corporatist welfare model
Reinforces the differences in position of high and
low status workers in the labour market.
Reinforces the gender division of labour, with men
taking the leading role in the labour market and
women providing domestic labour in the home.
First through the tendency to support the care of
children and the elderly by the provision of transfer
payments to households rather than through the
direct provision of public services.
Second by providing spouses with access to
welfare payments through their position as
dependants of their insured spouses.
Welfare
Welfare capitalism
capitalism (5)
(5)
Characteristic of Social Neoliberal: Corporatist:
welfare state democratic: USA Germany
Sweden
Decommodification high low medium

Universal Low safety net; State takes over

citizenship welfare when family fails
rights dependent to provide;
combined mainly on the welfare rights
with strong market through linked to
constraints private employment and
on occupational to family
employers, welfare; position;
emphasis emphasis on emphasis on
on equality market occupational
opportunity status
Welfare
Welfare capitalism
capitalism (6)
(6)
Characteristic Social Neoliberal: Corporatist:
of welfare democratic: USA Germany
state Sweden

Welfare Welfare system Residual welfare Welfare system

principles based on system for those based on
assumption of unable to work; income
all fit adults in level of protection
employment employment
determined by
market/ added
worker effects
Level and High public Low public High public
form of public expenditure on expenditure expenditure on
expenditure services income transfers
Welfare
Welfare capitalism
capitalism (7)
(7)
Characteristic Social Neoliberal: Corporatist:
of welfare democratic: USA Germany
state Sweden

Structure of High public High private High share of

employment sector services domestic services
employment employment

Wage Solidaristic Wide wage Medium dispersion

structure wage policy, dispersion High wages for men,
narrow wage between and lower wages for
dispersion within sectors secondary workers
between and and between
within gender and
sectors and ethnic groups
by gender
Employment
Employment systems
systems and
and
welfare
welfare regimes
regimes
Job structures
Care arrangements and employment
Pension system and employment
Employment
Employment systems
systems and
and welfare
welfare
regimes:
regimes: job
job structures
structures (1)
(1)
Amount of employment
The provision of public services
(cooperation with the private, voluntary
sector, JV & outsourcing)
Depends on size of welfare expenditure &
orientation
Transfer payments to citizens or wage
employment
Different levels of employment
Employment
Employment systems
systems and
and welfare
welfare
regimes:
regimes: job
job structures
structures (2)
(2)
The quality (skills and tasks) of work
Depends on the welfare regime &
associated system of collective bargaining
and labour market regulation
“Junk jobs” (restaurant, laundry and
cleaning services)
Neoliberal regimes
The reasons for developing Junk jobs:
low unemployment benefits
high demands for services
few subsidies
Employment
Employment systems
systems and
and welfare
welfare
regimes:
regimes: care
care arrangements
arrangements (1)
(1)
Leave policy
Paid or unpaid;
Individual or non-transferable rights;
Age of child;
Full or part time;
Paid by employer or state
Employment
Employment systems
systems and
and welfare
welfare
regimes:
regimes: care
care arrangements
arrangements (2)
(2)
Care arrangements encouraging
mothers in the labour market
Focus on involving fathers in parental leave
Provide help for women to remain in their
jobs and even to continue to work full-time or
close to full-time
Provide good quality child care
Protect full-timers against pressures to work
very long hours
Employment
Employment systems
systems and
and welfare
welfare
regimes:
regimes: pension
pension system
system
Welfare provision - old age or
disability
Early retirement scheme
Disability programmes
Legislation (age discrimination, retirement
age, etc.)
Insurance principles or on company
schemes
Employment
Employment systems
systems and
and
gender
gender regimes
regimes
Women are primarily viewed as
Mothers: their participation will be
contingent on their maternal role;
Workers: have to accommodate to
the needs of the employment regime;
or
Citizens: have equal rights to
participate in wage work.
Employment
Employment systems
systems and
and gender
gender
regimes
regimes -- part-time
part-time work
work (1)
(1)
Gender, equal opportunities –
negative perspective
Women are regarded as a disposable,
flexible or dependent labour supply.
Contingent nature and supportive role in the
labour market.
Lower wage rates, no benefits, training and
skills development.
Men are often in receipt of additional
incomes — from pensions, from student
maintenance or from unemployment benefit.
Employment
Employment systems
systems and
and gender
gender
regimes
regimes -- part-time
part-time work
work (2)
(2)
Gender, equal opportunities –
positive perspective
Provide increased opportunities for women
to participate in wage work but does not force
them into either worker or mother role.
Equal opportunities are not necessarily
equated with the same or identical behaviour
to that of men as workers, but instead may
involve valuing differences between men and
women.
Thank you