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Technology and the Future of Work

The Impact on Labour Markets and Welfare States

Bent Greve

Changes in the labour market demand new solutions to mitigate the potentially dramatic wiping away of jobs, and this important book offers both analysis and suggestions for change. Bent Greve provides a systematic and vigorous assessment of the impact of new technology on the labour market and welfare states, including comprehensive analysis of the sharing and platform economies, new types of inequality and trends of changes in the labour market.
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Index

The Impact on Labour Markets and Welfare States

Bent Greve

active labour market policies (ALMPs) 32, 867, 978
effectiveness of 87
adoption, of new technology 58
Airbnb 37, 40, 43, 47
algorithms, use of 26
alternative work 60
Arntz, M. 29
artificial intelligence 13, 25, 26
Atkinson, A.B. 96
automation
consequence of 22
EU jobs at risk due to 278
jobs with a high risk of 30
in labour market 26
replaceability of workers due to 78
between routine and non-routine work 57
skills, risk and consequences of 57
automotive and transportation economy 37
Bell, Daniel 38
Big Data, use of 14
in financial sector 22
impact on labour market development 20
blue-collar workers 21
bogus self-employment 81
casual labour 61
collaborative economy see sharing economy
collaborative employment 7980
collective bargaining 51, 74, 82
coverage rate in EU countries 76
company taxes 41, 93, 125
contracts
fixed-term 58
open-ended 58
protection against termination of 60
work contracts 70, 80
zero-hours 32, 53, 59
cross-country inequality, in welfare 109
crowd employment 79, 80
crowd-labour, phenomena of 53
day care, for children 32
decision-making
on labour market 51
use of technology in 24
demand for labour 6, 12, 16, 7980
digital economy
features of 37
job changes in 23
self-employment in 34
sharing economy and 37
digital “galley slaves” 24
division of labour 34, 51
dual labour market 103
concept of 56
forms of 54
economic inequality 1028, 115
degree of 109
impact on welfare states 109
economic recession 13, 103
economic safety net 54
economic security 54, 66, 83, 100, 111
education attainment level
impact on job security 32
risk of being working poor depending on 67
for upgradation of workers 87
Emmenegger, P. 54
employment
collaborative 80
crowd 79, 80
growth of 52
legislation for protection of 53
of low-skilled people 5
of migrants 118
new forms of 19
non-regular 60
non-standard 52
prospects of 18
protection of see employment protection
security of 52, 54
employment protection
within Europe 78
and flexibility 7781
replaceability, issue of 78
rules on hiring and firing of workers 77
for temporary workers 612
Eurofound 56
European Court of Justice 23
European Union (EU) 4, 33, 41, 77, 110
fair competition 39, 47, 49, 96
finance welfare services 98
financial crisis 3, 5, 22, 63, 68, 70, 88, 94, 1056, 119
financial sector, use of Big Data in 22
financing, of welfare states 40, 47, 913, 107
fixed-term contracts 589
flexibility
impact on job quality 79
of labour market 7781
of working 53
flexicurity, idea of 52, 54, 83
for-profit economy 35
free movement of workers 78, 1212
“freelance” work 47, 60, 79
Frey, C. 22, 26, 27
full-time work 58, 68
gender aspects, of labour market 32
day care, for children 32
job loss 32
self-employment 32
gift-economy 90
Gini coefficient, of welfare regimes 105
Great Depression 13
gross domestic product (GDP) 6, 90
as measure of societal development 435
guaranteed minimum income 947, 128
happiness, equality in 11015
degree of 114
health insurance system
employer-subsidized 54
in United States 86
hidden economy, notion of 4041, 43, 47, 78, 90, 91, 101
high-skilled jobs 9, 20, 25, 52, 103
demand for 1617
high-wage jobs 22, 55
hospitality and dining economy 37
hotel taxes 4041
household income, generation of 7, 34
IBM 25
income guarantee, in self-employment 40
income inequality 73, 99, 102, 105
share of income 107
income security 467
below the poverty line 67
guaranteed minimum income 947, 128
old age pension 94
participation income 96
personal allowance 96
and single person average income 69
unemployment insurance system 945
wage income 84
income taxes 41, 913, 96, 124
income transfers 856, 94, 98, 99, 125
Industrial Revolution 13, 14, 29
informal and undeclared work 59
information and communication technology (ICT) 19
information technology (IT) 6, 15, 23, 57
use in decision-making 24
insider-outsider in labour market, dichotomy of 5058, 66, 79
International Labour Organization (ILO) 82
internet, use of 20
internships 59
job changes, in digital economy 23
job creation 31
and incidence of overqualification 29, 31
permanent job 13
technological impacts on 12, 16
job destruction, due to technological changes 16, 27
job growth 18, 103
job hierarchy 50
job insecurity see job security
job loss, risk of 27, 29
due to self-driving cars 29
in EU countries 278
gender aspects of 32
in low-qualified workers 29
in OECD countries 30
job mobility 11
job opportunities 65, 86
job polarisation 52, 556
job quality 38, 52, 60, 78
measurement of 46
replaceability and flexibility, impact of 79
job satisfaction 112
job security 389, 47, 52, 112
need of education in 32
in Nordic welfare states 53
job stability 56
job status insecurity 54
job training 87
jobless economic growth 5
jobless growth rate, rise of 17
Keynes, J.M. 13
Labour Force Survey 45, 63
labour market 2, 57, 10, 15
adoption of new technology in 58
automatic stabilisers of 86
automation, impact of 26
Big Data, use of see Big Data, use of
consequence of automation on 22
dual labour market see dual labour market
existing issues in 5870
flexibility of 7781
functioning of 51
gender aspects of 32
impact of technological development on 2, 12, 216
insiders versus outsiders in 5058, 79
migrants’ position in 11720
precariousness of 72, 79, 81, 115
regulation of 53
restructuring of 11
security of 52
segmentation of 60
segregation of 85
sharing economy in relation to 38
stability in 812
Swedish 55
trade union, impact of 77
United Kingdom (UK) 545
for unskilled labour 38
work–family life balance 11
labour market organisations 7, 73
labour mobility 117
labour productivity 17
labour-related security 52
labour-saving technologies 29
Lindbeck, A. 5051
living in poverty, risk of 69, 71, 80, 106, 108, 127
long working hours, impact of 71
low-income jobs 22, 55
low-skilled jobs 9, 22, 25, 50, 117, 121
demand for 16
opportunities in 31
risk of job loss 29
machine learning 26
market economies 41
media and entertainment industry 37
middle-skilled workers 17, 25
migrants’ position, in labour market 11720
changes in 1212
employment rate 118
labour force participation 117
mean equivalised net income 120
risk of long-term unemployment 11819
monopolies, development of 11
National Longitudinal Survey of Youth 104
Neisser, H. 17
occupational welfare 56, 108
occupational-based pensions 108
off-shoring, of jobs 55
oil crisis of 1970s 1
old age pension 94
on-call work 59, 60
on-demand economy 36
open-ended contracts 58
Organisation for Economic Co-operation and Development (OECD) 1
Osborne, M. 22, 26, 27
outsourcing, of jobs 9, 117
over-employment 65, 112
impact on wellbeing 71
overqualification, incidence of 29, 31
own-account workers 67
Paine, Thomas 94
participation income 96
part-time working 45, 38, 58, 63, 65
pension insecurity 115
personal tax allowance 96
platform economy 34, 36
data on 413
flexibility of working in 53
tertiary time and workplaces 53
posted work 59
poverty
poverty line 105
risk of 1056
PricewaterhouseCoopers (PwC) 41
printing industry 14
professions, in danger due to technological change 216
in EU countries 278
in high-skill areas 25
in service industry 26
quality of life 43, 11012, 128
long working hours, impact of 71
quality of work
factors influencing 70
impact of technology on 59
working time preferences 112
real wage index development, in developed countries 71
replaceability, of workers
by automation 78
employment protection and 7781
and job quality 79
retail and consumer goods 37
robot, use of 20, 24, 26, 57
routine jobs, replacement of 55, 56
self-driving cars, job loss due to 2, 29
self-employment 5, 78, 22, 40, 45, 53, 54, 58, 73, 128
blurring of line with employed 67
bogus self-employment 81
concept of 67
in digital economy 34
financial crisis 68
gender aspects of 32
and membership in trade unions 76
minimum income guarantee 40
payment for the delivered work 40
sickness benefit in 40
social security in 40
unemployment benefits 68
in welfare states 40
without any employees 67, 68
self-esteem 66, 111
service economy 121
service industry, impact of technology on 26
service jobs, poorly-paid 21
sharing economy 34, 42, 80
categories of 36
characteristics of 36
consequence of working in 54
cost–benefit calculation 89
definition of 35
development of 41, 49
and digital economy 37
diversities and possibilities within 35
examples of 37
and financing 8991
for generating extra income 48
interpretation of 37
meaning of 3541
nature of 35
and on-demand economy 36
payment of taxes in 91
pros and cons of 35, 39, 458
in relation to the labour market 38
skill shortages, risk of 32
skill-biased technical change 16
skills-biased development 103
Smith, Adam 13
Snower, D. 5051
social capital 87, 10910, 125
social empowerment 11
social esteem 51
social investments 85, 88, 100
social security 34, 48, 84
contributions to 41
coverage for 47
health insurance 54
and occupational welfare 56
in self-employment 3940, 81
welfare states 86, 111
societal development, measurement of 435
standard of living 28, 96, 122, 128
Swedish labour market, development of 55
tax havens 39, 47, 90, 92, 93
taxes
avoidance of 90
capital 98, 125
collection of 86
company 41, 125
evasion of 89, 91
hotel 41
income 41, 93, 98
land 98
marginal tax rate 106
payment of 47, 91, 98
personal tax allowance 96
reporting 47
in sharing economy 91
Tobin tax 93
on wealth 93, 98
technological change, impact of
on financial sector 22
on jobs 13, 58
professions in danger due to 216
on quality of work 59
routine-based 56
on service industry 26
on size and composition of workforce 26
size of the problem due to 2632
skill-biased 56
technological development
bright side of 1256
dark side of 1245
impact of 2, 13
impact on size and composition of the workforce 26
labour-saving technologies 29
new technology, efficiency of 20
opposite positions on the impact of 1619
optimistic version of 1617
pessimistic version of 1718
phases of 14
professions in danger due to 216
skill-biased technical change 16
unemployment due to see technological unemployment
which can save labour 38
technological unemployment
history of 1216
impact on jobs 13
risk of 12, 17
temporary agency work 59
temporary jobs 6061
employment protection of 612
in welfare states 61
Tobin tax, on financial transactions 93
tourism industry 38
trade unions 512, 73
density of
change in 77
decline in 74
rate in EU countries 75
impact on labour market 77
legitimacy of 77
membership of 747
erga omnes approach for 77
Uber car sharing services 3940, 47
underemployment 63
consequence of 65
definition of 61
development in 63, 64
issue of 3
rate of 63
unemployment 34, 45
active labour market policies (ALMPs) 32
compensation for 81
impact on life-satisfaction 112
impact on wellbeing 71
as measure of societal development 435
risk of long-term 118
technological see technological unemployment
unemployment benefit
eligibility criteria for 54, 63
programmes of 86
in self-employment 689
unemployment insurance system 945
cost of 78
wage development 70
wage income 8, 73, 78, 84, 96, 103, 117, 128
wealth inequality 103
welfare states 32
active labour market policies (ALMPs) 32, 867, 978
Central European 3, 98, 124
challenges of 12, 27
change in 879
crisis of 84
development of 88
Eastern European 3, 27, 33, 61, 63, 65, 74, 99
economic inequality, impact on 109
financial activities 40
financial crisis of 2
financing of 40, 47, 913, 107
income transfers 94
Nordic 74, 88, 989, 123
preparation of 979
relation between jobs and 857
revenue for 39
self-employed people in 40
size and structure of 73
social capital 87
social security 86, 111
Southern European 3, 10, 53, 55, 61, 65, 99
spending and collection of taxes 86
universal welfare states 4
white-collar workers 21
work contracts 70, 80
work–family life balance 11, 53, 111
working time preferences 112
work-fare state 85
workforce, impact of technology on 26
work-status congruence 61
World Economic Forum 27
World Happiness Report 102, 110
zero-hours contracts 32, 53, 59