Chapter 5: Comparing Durations of Unemployment
In Chapter 1 we noted how Esping-Andersen (1990, 1999) writes about the insider/outsider tendency in conservative, insurance-based welfare regimes, of which Germany is one. This tendency is for core workers – those with fulltime, continuous employment histories – to be given priority over others. Gallie and Paugam (2000) and Schmid and Reissert (1996) note how insurance systems (like the German one) tend to protect well the incomes of core workers but neglect marginal workers. This claim is conﬁrmed by the analysis in Chapter 4: in Germany those who have been core workers are not as vulnerable to income poverty as those who have previously not worked. In Britain, we do not detect such a strong distinction. In this chapter, in which we look at the duration of unemployment, we widen the idea of the institutional regulation of unemployment beyond the beneﬁt system. We consider the market more carefully, and market differences between Britain and Germany. As we discussed in Chapter 1, one issue prominent in the discussion on the causes of unemployment has been the institutional regulation of the labour market and how it affects labour market clearing (Grubb and Wells 1993; OECD 1994; Siebert 1997). One of our typologies divided countries into those with high levels of labour market regulation and those with lower levels. But how does labour market regulation affect unemployment? In spite of much research, no conclusive ﬁndings have emerged. In particular, no simple relationship has been established between labour market regulation and the overall level...
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