Convergence and Europeanisation : the political economy of social and labour market policies
Vliet, O.P. van
Citation
Vliet, O. P. van. (2011, June 29). Convergence and Europeanisation : the political economy of social and labour market policies. Legal Studies. Leiden University Press, Leiden.
Retrieved from https://hdl.handle.net/1887/17744
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Convergence and Europeanisation
The Political Economy of Social and Labour Market Policies
Convergence and Europeanisation
The Political Economy of Social and Labour Market Policies
PROEFSCHRIFT
ter verkrijging van
de graad van Doctor aan de Universiteit Leiden,
op gezag van Rector Magnificus prof. mr. P.F. van der Heijden, volgens besluit van het College voor Promoties
te verdedigen op woensdag 29 juni 2011 klokke 10.00 uur
door
Olaf Peter van Vliet
geboren te Den Haag in 1983
Promotiecommissie:
Promotores: prof. dr. C.L.J. Caminada prof. dr. K.P. Goudswaard
Overige leden: prof. dr. A.C. Hemerijck (Vrije Universiteit Amsterdam) dr. F. Koster (Erasmus Universiteit Rotterdam)
prof. dr. D.H. Swank (Marquette University, Milwaukee, VS) prof. dr. S.C.G. Van den Bogaert
Lay-out: Anne-Marie Krens – Tekstbeeld – Oegstgeest
ISBN 978 90 8728 145 8 e-ISBN 978 94 0060 063 8
© 2011 O.P. van Vliet / Leiden University Press
Behoudens de in of krachtens de Auteurswet van 1912 gestelde uitzonderingen mag niets uit deze uitgave worden verveelvoudigd, opgeslagen in een geautomatiseerd gegevensbestand, of openbaar gemaakt, in enige vorm of op enige wijze, hetzij elektronisch, mechanisch, door fotokopieën, opnamen of enige andere manier, zonder voorafgaande schriftelijke toestemming van de uitgever.
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No part of this book may be reproduced in any form, by print, photoprint, microfilm or any other means without written permission from the publisher.
Preface
European welfare states are constantly changing and it seems justifiable to predict that this pattern will continue in the near future. Although welfare state reform is primarily a domestic matter, the role of the European Union has become more and more important over the past two decades. I had the privilege of spending more than four years doing research on such an intri- guing subject. The result of this research is a dissertation that consists of a collection of refereed journal articles and one paper that is under review.
I am grateful to the Department of Economics at Leiden University for pro- viding an excellent environment of academic freedom. I would like to thank my supervisors and all colleagues of the Stichting Instituut Gak funded research programme ‘Reforming Social Security’ and the Department of Eco- nomics for their support and critical yet constructive comments on my work.
Our numerous discussions on welfare state reform, theEU and research in general were inspiring and helpful. I am also much indebted to my colleagues at Marquette University for making me feel welcome in Milwaukee during the fall semester of 2010. Studying the Europeanisation of welfare states in theUSwas a rewarding experience.
Many thanks go to my friends and family for their support and patience throughout the project. I thank my parents for their love and encouragement, from which I have benefited so much. Ilka, these years were wonderful. You reminded me, sometimes literally, that there is more to life than doing research.
I dedicate this book to you.
Olaf van Vliet Leiden, April 2011
Table of Contents
LIST OFTABLES ANDFIGURES IX
LIST OFABBREVIATIONS XI
1 INTRODUCTION 1
1.1 Welfare states and European integration 1
1.2 Research questions 3
1.3 Theoretical focus 4
1.4 Empirical approach 7
1.5 Methodological approach 9
1.6 Outline and main findings 11
2 PATTERNS OF WELFARE STATE INDICATORS IN THEEU:
IS THERE CONVERGENCE? 15
2.1 Introduction 16
2.2 The convergence hypothesis 17
2.3 Research design 21
2.4 Results 26
2.5 Conclusion 36
Appendix 2A 38
3 EUROPEANSOCIALMODEL: NO CONVERGENCE FROM THE EAST 39
3.1 Introduction 40
3.2 Deepening and widening in the context of social policy 41 3.3 Institutional characteristics of CEE social policy and its EU context 45
3.4 Convergence 48
3.5 Welfare regimes 52
3.6 Discussion and conclusions 55
4 DIVERGENCE WITHIN CONVERGENCE.
EUROPEANISATION OF SOCIAL AND LABOUR MARKET POLICIES 59
4.1 Introduction 60
4.2 Social convergence in the European Union 61
4.3 Measures and method 64
4.4 Analysis 67
4.5 Discussion 78
VIII Table of Contents
5 EUROPEANISATION AND THE POLITICAL ECONOMY OF ACTIVE LABOUR
MARKET POLICIES 81
5.1 Introduction 82
5.2 Europeanisation of active labour market policies 83
5.3 Data, measures and method 89
5.4 Empirical analysis 92
5.5 Discussion and conclusions 100
6 PRIVATE SOCIAL SECURITY AND INTERNATIONAL ECONOMIC INTEGRATION 103
6.1 Introduction 104
6.2 Welfare states and international economic integration 105
6.3 Private social security 108
6.4 Hypotheses 109
6.5 Data, measures and method 113
6.6 Empirical analysis 117
6.7 Conclusions 124
Appendix 6A – List of variables and definitions 126
Appendix 6B – Descriptive statistics 127
7 CONCLUSION: MAIN FINDINGS,IMPLICATIONS AND OUTLOOK 129
7.1 Main findings 129
7.2 Contributions and implications 133
7.3 Outlook 135
SAMENVATTING 139
BIBLIOGRAPHY 149
INDEX 165
CURRICULUM VITAE 169
List of Tables and Figures
List of Tables
2.1 Gross public social expenditure (% GDP) 25
2.2 β-Convergence of gross public social expenditure as % of GDP, 1980-
2003 27
2.3 β-Convergence of public social expenditures in EU-15 controlled for
cyclical and demographic effects, 1985-2003 28
2.4 Net total social expenditure in % GDP, 1993-2003 30 2.5 Average gross replacement rates unemployment benefits, 1981-2005 31 2.6 β-Convergence of mean gross replacement rates unemployment
benefits, 1981-2005 32
2.7 Net social assistance as % of net disposable income at average wage
level, 1992 and 2001 33
2.8 EU at-risk-of-poverty rate after social transfers, 1995-2006 34
2.9 OECD poverty rates and poverty gap 35
A2.1 Mean andσ-convergence tests of gross public expenditure by social
policy areas (% GDP), 1980-2003 38
3.1 Total social expenditures (% GDP) 49
4.1 Total social expenditures (% GDP), three-year averages 68 4.2 Expenditures on active labour market policies, three-year averages 69 4.3 Expenditures on specific ALMP areas, three-year averages 72
4.4 Tax and Benefits, three-year averages 74
4.5 Characteristics of unemployment benefits, three-year averages 76
5.1 ALMP expenditures, peer reviews, and council recommendations 94 5.2 ALMP expenditures in OECD-22 countries, 1985-2005 96 5.3 ALMP expenditures as share of LMP expenditures in EU-15 countries,
1985-2005 98
5.4 Error correction models of ALMP expenditures, 1985-2005 99
6.1 Voluntary private social expenditure (% GDP) 118 6.2 Voluntary private social expenditure, 20 OECD countries, 1980-2005 120 6.3 Voluntary private social expenditure, 20 OECD countries, 1980-2005 123
A6.1 Descriptive statistics 127
X List of Tables and Figures
List of Figures
2.1 Average gross public expenditure by social policy areas in EU15
(% GDP), 1980-2003 26
3.1 Total social expenditures (% GDP) corrected for cyclical and
demographic trends 51
3.2 Hierarchical cluster analysis 2005-2006 54
6.1 Compensation hypothesis 107
List of Abbreviations
ALMP Active Labour Market Policy CEE Central and East European
CEEC Central and East European Countries EC European Commission
ECHP European Community Household Panel EEC European Economic Community EES European Employment Strategy EMU Economic and Monetary Union ESM European Social Model EU European Union GDP Gross Domestic Product LMP Labour Market Policy NMS New Member States
OECD Organisation for Economic Co-operation and Development OLS Ordinary Least Squares
OMC Open Method of Coordination
SILC Statistics on Income and Living Conditions UK United Kingdom
US United States
