By Josef C. Brada, Mariusz-Jan Radlo, Wojciech Bienkowski
ISBN-10: 0230200532
ISBN-13: 9780230200531
European contributors try for an monetary and social coverage version which includes a set of universal values whereas retaining fiscal competitiveness. This ebook explores how new participants glance to the U.S. version, and the way older contributors use other's reports to reshape their very own economies.
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Extra info for Growth versus Security: Old and New EU Members Quests for a New Economic and Social Model
Example text
Income equality and distorted incentives could well be a serious hindrance to future growth. 5 These problems need to be addressed in Sweden, if the country wishes to prosper. On the other hand, the American model also has its shortcomings: widespread poverty, huge income differences, crime, and a large fraction of the least skilled in prison. As emphasized by the NBER–SNS team, each model has its shortcomings and both can learn from each other. Different models allow institutional competition and allow us to learn from, and emulate, more successful solutions.
Relief work displaced ordinary jobs, and training programmes were found not to justify their costs. The costs of ALMP were substantial. Total spending on labour market programmes, including unemployment compensation, was 3 per cent of GDP in 1990, with two thirds going to active programmes. 5 per cent of GDP. As unemployment subsequently rose and then declined, total spending followed. However, as shown by Forslund and Krueger (2006), ALMP did little to help Sweden recover from the unemployment crisis of the early 1990s.
The policy reforms that the new government is now enacting are consistent with the analyses in the NBER–SNS reports insofar as they reduce the benefits of being unemployed and strengthen the incentives to work. The reforms reduce replacement rates in unemployment insurance from 80 to 70 per cent after 200 days, to 65 per cent after 300 days, refrain from raising the ceiling on benefits and limit the duration of benefits; after 300 days a ‘job guarantee’ becomes effective. They also require union members to pay a larger share of the cost of unemployment through higher membership fees.
Growth versus Security: Old and New EU Members Quests for a New Economic and Social Model by Josef C. Brada, Mariusz-Jan Radlo, Wojciech Bienkowski
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