Transitional labor markets

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Transitional labor markets are institutions that secure high-risk phases or transitions in a person's working life, such as the change from full-time to part-time employment. The concept goes back to the economist Günther Schmid , who coined the term in the 1990s. Transitional labor markets can be found in the area of ​​social policy or active labor market policy . The background is developments on the labor market, which are increasingly characterized by flexibility , discontinuity and risk phases for the employee.

The concept of transition labor markets

Günther Schmid describes the consequences of developments on the labor market, including the phenomena of increasing transitional employment and transitional unemployment . The former means the strong deviation from a 30-hour work week, for example due to the change from full-time to part-time work, due to the biographical events of an employee. The latter means a temporary phase of unemployment, for example due to a bridging period between two employment relationships. The concept of transition labor markets applies to these and other transition phases.

Definition and explanation of terms

Transitional labor markets can be defined as institutional arrangements that regulate, facilitate and secure high-risk transition phases (“ status passages ”) throughout a person's entire working life.

According to Schmid, transitional labor markets are ideally characterized by the following characteristics:

  • "They are bridges between gainful employment and other productive activities,
  • they are secured by collective agreements and law or statute,
  • they combine low or inconsistent wages with transfers or property income, and
  • they finance work instead of unemployment. "

So the idea behind the concept of transition labor markets is not in itself new. It is about shaping social policy in such a way that it offers people security and support in various critical phases of their working life. However, it is also becoming apparent that the transitional labor markets should or can not only guarantee the security of a certain job, but should, to a certain extent, safeguard insecurity. This seems paradoxical at first. In fact, such insecure, risky transition phases are currently occurring more and more frequently and require social security. In other words, transitional labor markets should not create job security , but flexible employment security. The concept thus implements the principle of flexicurity , i.e. an interplay of flexibility and security.

Central transition phases in working life

Schmid makes a systematic distinction between five different labor market transitions, which must be secured by transitional labor markets. Such transitions occur at the interfaces between the labor market, unemployment, the education system, private households and pensions. The following transition phases thus arise:

  • Transitions between short-time and full-time employment or self-employed and dependent employment,
  • Transitions between unemployment and employment,
  • Transitions between education (training or further education) and employment,
  • Transitions between private and professional activity,
  • Flexible transitions between work and retirement.

Examples of transitional labor markets

For these various transition phases, Schmid names examples that have already been implemented as well as possible further measures in the sense of transition labor markets:

This includes, for example, short-time work benefits for transitions between short-time and full-time employment or sabbaticals with a return guarantee , which free up jobs for other people during this time. In addition, approaches such as the four-day week or increased incentives to compensate for overtime in leisure time are conceivable.

In the transition from unemployment to employment, for example, business start-ups for the unemployed, integration assistance for the long-term unemployed, vocational rehabilitation and semi-sheltered jobs for the elderly or disabled are noteworthy bridges.

In the case of mass layoffs, transfer companies or employment and qualification companies can be set up to ward off the threat of unemployment and for qualification .

In the transition between (further) education and work, the principle of job rotation is interesting, in which employees receive external further training and the previously unemployed take their place. The job rotation measure also affects transitions between unemployment and employment.

Transition phases between private activities and work are mostly related to family planning . Here, for example, the individualization of parental leave entitlements , wage replacement rates, flexible use of vacation time over several years, a right to part-time work with a right to return to full-time or the right to a sabbatical in the course of an employment career would be helpful. (See also: Life phase-oriented working hours .)

For the transition between work and retirement, the promotion of part-time work for older people is essential.

The measures shown here represent only a part of the already implemented and other possibilities through which the transition phases can be secured. It can be seen that the concept of transitional labor markets has already been implemented, if not fully exploited. In general, these are measures that are aimed at employment insurance instead of the previously dominant unemployment insurance (focus on income maintenance for the unemployed) , i.e. cover not only unemployment but also other types of income risks, namely also self-generated risks.

Goals of transition labor markets

The implementation of transition labor markets has several goals. Above all, as already described, high-risk phases, uncertainties and transitions in a person's working life should be regulated and secured. This in turn means that unemployment can be reduced. In addition, the aim is to prevent people who are currently in an unfavorable position on the labor market, such as the long-term unemployed, from falling by the wayside or being excluded from the labor market. By hedging uncertainties and risk phases, the willingness of working people to actively take such risks and to be ready for mobility increases at the same time. These goals are compatible with current developments on the labor market, which are characterized by increasing flexibility . In addition, safeguarding transitions should promote equality between women and men in the labor market. The reasoning behind this is that many risks in the course of employment today lie in starting a family or in the need for care of the elderly, i.e. outside the labor market, and such phases of risk have traditionally been resolved by the withdrawal of women from the labor market. Better structural support on the one hand (for example in the form of expanding kindergarten places) and more flexible working time options and (parental) leave entitlements could improve women's chances, even in transition phases. The independence of women would also be promoted by a more individual pension system independent of the partner. At the same time, men could be more motivated to make transitions in the form of family activities if such transition phases were made more rewarding. All in all, transitional labor markets are aimed at a more mobile, flexible and open labor market that encourages workers to take greater risks through protection.

Finally, if one asks whether transitional labor markets contribute to the goal of full employment, at least one contribution to this goal can be stated. However, it is essential to clarify how this full employment should be defined. Because Schmid bases his concept of transitional labor markets on a changed understanding of what full employment is, and here too emphasizes the importance of current changes in the labor market (see the section “ Changing understanding of full employment ”).

Artist and IT labor market as prototypes for transitional labor markets

The artist labor market is particularly marked by uncertainties and risks: Here people are increasingly working as freelancers and project-related, they sometimes have several short employment relationships in parallel and are dependent on the respective order situation and their network. Considerations for transitional labor markets in the artistic field would be mechanisms such as wage bonuses or combinations with permanent employment relationships, for example part-time. In this context Schmid also refers to the French security system for artists, where a large part of the income of artists is provided through transfer payments from the unemployment insurance. Schmid mentions the IT labor market as another ideal typical area for transitional labor markets, which is also characterized by discontinuity and independent forms of work and requires special protection.

Background of the concept of transition labor markets from a sociological perspective

Transitional labor markets have to be seen against a complex background of a changing society and world of work. If you look at the associated risks for the individual, their social relevance becomes clear. From a sociological perspective, the concept can be combined with approaches by Ulrich Beck or Anthony Giddens , for example .

Developments on the labor market in a risk society

To understand the need for the concept of transitional labor markets, one must consider the developments that have occurred in the labor market over the past few decades and up to the present day. Transitional labor markets must be seen against the background of a high unemployment rate and the ongoing processes of globalization , digitization , individualization and flexibility . The sociologist Ulrich Beck describes the effects that these ongoing developments have on the labor market, among other things , under the heading of the risk society . There are increased demands for flexibility and deregulated, de-standardized forms of gainful employment; the hitherto strong standardization of employment contracts, place of work and working hours is dissolving in favor of precarious employment. Standard work is to a certain extent replaced by “non-standard work”. What is emerging is a new "system of flexible, plural, decentralized underemployment" that is characterized by risks. For the individuals, the specific effects are shown by the fact that their employment trajectories are becoming more and more variable and unsteady, i.e. they are characterized by changes and interruptions. However, critical transition phases have not yet been adequately covered by German social policy. The focus so far has been on risks such as unemployment, illness and old age. Schmid takes up the need for action resulting from all these developments with the concept of transitional labor markets.

Knowledge-based areas of the labor market, such as the media and IT industries, are particularly risky and in need of security. People in these areas are often not permanently employed, but work independently as freelancers. The German social system, however, offers little protection and compensation for low wages for the self-employed in the media industry. In these professions in particular, employees are exposed to high (market) risks. Creating transitional labor markets therefore seems particularly important in these areas. Due to this still current problem, Schmid describes artist and IT labor markets, as already described, as prototypes for transitional labor markets.

Changed understanding of full employment

When developing the concept of transitional labor markets, Schmid asks whether the socio-political goal of full employment still makes sense today, and thus takes up a controversial discussion. In its original sense, this goal no longer appears appropriate. Rather, the standardized full employment system is in the process of dissolving. If one does not want to reject the goal of full employment, however, this term must be redefined. He may no longer only consider employment relationships in the classic sense of the normal employment relationship . The focus must move away from the traditional breadwinner model and instead do justice to the current conditions on the labor market with its multitude of forms of employment. So when full employment is mentioned, the concept of work has to be expanded. All productive activities are taken into account, including atypical employment relationships and, for example, combinations of unpaid family work and gainful employment. The idea behind full employment subsequently becomes a regulatory one. This means that the goal of full employment must relate to a person's entire career, with all of its possible fluctuations in working hours. A possible model for a new full employment could therefore be a "flexible 30-hour week" measured against an average working life . In addition, according to Schmid, it must be accepted that unemployment cannot be completely avoided “in a dynamic market economy”. If one takes these expansions or adjustments into account, the goal of flexible instead of permanent full employment can still be pursued, according to Schmid. Transitional labor markets ultimately contribute to this as part of a newly oriented, activating labor market and social policy.

Transitional Labor Markets and The Third Way According to Anthony Giddens

The philosophy behind the transition labor markets, namely hedging against uncertainties, can be compared to the Third Way proposed by Anthony Giddens in 1998 . Here, too, the background is the developments in globalization and individualization. According to Giddens, the social benefits offered until then no longer do justice to the many different life situations and risks of people. In place of “protectionism”, a system of social policy should emerge that contains a balanced relationship between “individual and state responsibility” and at the same time continues to aim at social justice. In such a system of rights and obligations for the individual, risk and responsibility would then be in a relationship to one another. With regard to unemployment, for example, Giddens suggests linking unemployment benefits to the obligation to actively seek work in order to ensure that the social system does not weaken one's own motivation to actively seek work. In these points described, Giddens Third Way is strongly reminiscent of the concept of transitional labor markets .

International perspective

The concept of transitional labor markets is part of various measures of the Dutch, Danish and Swedish labor market and social policy, in which the principle of flexicurity has already found influence. In these countries there has been an increasing focus on an activating employment policy for longer than in Germany. For example, professional mobility and further training are specifically promoted, the activation of problem groups in the labor market is promoted and rotation models are implemented. In Denmark in particular, the success of labor market policy can be traced back to an underlying "radical decentralization" which was not included in previous German labor market reforms such as the Hartz reforms . In addition, in Denmark and Sweden, structures are already being implemented in the (training) system that meet the new requirements on the labor market, for example the focus on project work and close coordination of the education and employment system. The Netherlands, Denmark and Sweden can to a certain extent be described as exemplary and trend-setting with regard to the design of transitions in working life.

In his elaboration of the transitional labor markets, Günther Schmid makes some specific reference to Dutch and Scandinavian measures that implement the principle of transitional labor markets. For transitions between the education and employment system, for example, the above-mentioned principle of job rotation applied in Denmark and Sweden appears to be a suitable institution. Useful additions to this rotation model are the right to a training or further training position for the long-term unemployed or to a training abbatical. This enables mobility and transitions in working life in a regulated form. The Swedish system has proven to be effective with regard to the transitions between family work and gainful employment and equality between men and women in the labor market.

Further development of the concept

Günther Schmid is working on the concept of transitional labor markets together with the French labor market researcher and economist Bernard Gazier .

With reference to the transition markets, the concept of a labor market policy was developed as a social risk policy, which has gone into the idea of tripartite job security .

literature

  • Dominique Anxo, Jacqueline O'Reilly: Employment, working time and transitional labor markets in a comparative perspective. Wissenschaftszentrum Berlin für Sozialforschung GmbH, 2000, accessed on October 12, 2017 .
  • Ulrich Beck : Risk Society. Towards a New Modernity. Suhrkamp, ​​Frankfurt am Main 1986.
  • Ulrich Beck: Brave new world of work: Vision: Global civil society. Campus Verlag, Frankfurt am Main 1999.
  • Jürgen Gabriel, Michael Neugart (Ed.): Economy as the basis of political decisions . VS Verlag, Wiesbaden 2001.
  • Anthony Giddens : The Third Way: The Renewal of Social Democracy. Suhrkamp, ​​Frankfurt am Main 1999.
  • Karin Gottschall, Birgit Pfau-Effinger (ed.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002.
  • Annette Henninger, Karin Gottschall: Freelancers in Germany's Old and New Media Industry: Beyond Standard Patterns of Work and Life? In: Critical Sociology. Volume 33, number 1-2, 2007, pp. 43-71.
  • Philipp Hessinger: Globalization and labor market policy thought differently: the concept of transition labor markets. An international comparative perspective . In: Philipp Hessinger, Markus Pohlmann (eds.): Globalization as auto-capitalism . Springer Fachmedien, Wiesbaden 2017, pp. 251–288.
  • Gerhard Naegele (Ed.): Social life course policy. VS Verlag, Wiesbaden 2010.
  • Gerhard Naegele: Social Life Course Policy - Basics, Analyzes and Concepts . In: Gerhard Naegele (Hrsg.): Social life course policy. VS Verlag, Wiesbaden 2010, pp. 27-86.
  • Günther Schmid : Transitional labor markets in the cooperative welfare state: Development tendencies in labor market policy in Europe. In: Winfried Schmähl , Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125-148.
  • Günther Schmid: Activation of labor market policy: flexibility and security through transitional labor markets. In: Jürgen Gabriel, Michael Neugart (Ed.): Economy as the basis of political decisions . VS Verlag für Sozialwissenschaften, Wiesbaden 2001, pp. 161–187.
  • Günther Schmid: Promotion of gender equality through transitional labor markets . In: Karin Gottschall, Birgit Pfau-Effinger (Hrsg.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002, pp. 281-307.
  • Günther Schmid: Paths to a new full employment. Transitional labor markets and activating labor market policy. Campus Verlag, Frankfurt am Main 2002.
  • Günther Schmid: Transitions on the labor market: insuring work, not just unemployment . edition sigma, Berlin 2011.
  • Günther Schmid: Social risk management through transitional labor markets. Wissenschaftszentrum Berlin für Sozialforschung GmbH, 2004, accessed on October 12, 2017 .
  • Günther Schmid, Bernard Gazier (Eds.): The dynamics of full employment: Social integration through transitional labor markets . Edward Elgar Publishing, Cheltenham / Northampton (Mass.) 2002.
  • Winfried Schmähl, Herbert Rische (Ed.): Change in the world of work - Consequences for social policy . Nomos, Baden-Baden 1999.
  • Olaf Struck: Flexibility and security. Empirical findings, theoretical concepts and institutional design of employment stability. VS Verlag, Wiesbaden 2006.

Individual evidence

  1. ^ A b Günther Schmid : Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl , Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 129.
  2. ^ Günther Schmid: Activation of labor market policy: flexibility and security through transitional labor markets. In: Jürgen Gabriel, Michael Neugart (Ed.): Economy as the basis of political decisions . VS Verlag für Sozialwissenschaften, Wiesbaden 2001, pp. 161–187, here p. 178.
  3. ^ A b Günther Schmid: Social risk management through transitional labor markets . Wissenschaftszentrum Berlin für Sozialforschung GmbH, 2004, p. 35 , accessed on October 12, 2017 .
  4. ^ A b Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 130.
  5. ^ A b Günther Schmid: Activation of the labor market policy: flexibility and security through transitional labor markets. In: Jürgen Gabriel, Michael Neugart (Ed.): Economy as the basis of political decisions . VS Verlag für Sozialwissenschaften, Wiesbaden 2001, pp. 161–187, here p. 183.
  6. ^ Günther Schmid: Activation of labor market policy: flexibility and security through transitional labor markets. In: Jürgen Gabriel, Michael Neugart (Ed.): Economy as the basis of political decisions . VS Verlag für Sozialwissenschaften, Wiesbaden 2001, pp. 161–187, here p. 177 f.
  7. ^ Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 135.
  8. ^ Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 139.
  9. ^ A b Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125-148, here p. 142 f.
  10. ^ A b Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 144.
  11. ^ A b Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 145.
  12. Günther Schmid: Promotion of gender equality through transition labor markets . In: Karin Gottschall, Birgit Pfau-Effinger (Hrsg.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002, pp. 281–307, here p. 287.
  13. ^ Günther Schmid: Activation of labor market policy: flexibility and security through transitional labor markets. In: Jürgen Gabriel, Michael Neugart (Ed.): Economy as the basis of political decisions . VS Verlag für Sozialwissenschaften, Wiesbaden 2001, pp. 161–187, here p. 182.
  14. ^ Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here p. 143.
  15. Günther Schmid: Promotion of gender equality through transition labor markets . In: Karin Gottschall, Birgit Pfau-Effinger (Hrsg.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002, pp. 281-307.
  16. Günther Schmid: Promotion of gender equality through transition labor markets . In: Karin Gottschall, Birgit Pfau-Effinger (Hrsg.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002, pp. 281–307, here p. 290.
  17. Günther Schmid: Promotion of gender equality through transition labor markets . In: Karin Gottschall, Birgit Pfau-Effinger (Hrsg.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002, pp. 281–307, here p. 293 ff.
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  19. ^ A b Günther Schmid: Ways to a new full employment. Transitional labor markets and activating labor market policy. Campus Verlag, Frankfurt am Main 2002, p. 226.
  20. ^ A b Günther Schmid: Transitional labor markets in the cooperative welfare state: Development tendencies of labor market policy in Europe. In: Winfried Schmähl, Herbert Rische (Hrsg.): Change in the world of work - consequences for social policy . Nomos, Baden-Baden 1999, pp. 125–148, here pp. 135 ff.
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  22. ^ Günther Schmid: Social risk management through transitional labor markets . Wissenschaftszentrum Berlin für Sozialforschung GmbH, 2004, p. 39 , accessed on October 12, 2017 .
  23. Philipp Hessinger: Globalization and labor market policy thought differently: the concept of transition labor markets. An international comparative perspective . In: Philipp Hessinger, Markus Pohlmann (eds.): Globalization as auto-capitalism . Springer Fachmedien, Wiesbaden 2017, pp. 251–288, here pp. 251 f.
  24. ^ Günther Schmid: Social risk management through transitional labor markets . Wissenschaftszentrum Berlin für Sozialforschung GmbH, 2004, p. 2 , accessed on October 12, 2017 .
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  26. ^ Ulrich Beck : Brave new world of work: Vision: Global civil society. Campus Verlag, Frankfurt am Main 1999, p. 76 f.
  27. ^ Ulrich Beck: Risk Society. Towards a New Modernity. Suhrkamp, ​​Frankfurt am Main 1986.
  28. ^ Ulrich Beck: Brave new world of work: Vision: Global civil society. Campus Verlag, Frankfurt am Main 1999, p. 86 ff.
  29. a b Ulrich Beck: Brave new world of work: Vision: Weltbürgergesellschaft. Campus Verlag, Frankfurt am Main 1999, p. 93.
  30. ^ Ulrich Beck: Risk Society. Towards a New Modernity. Suhrkamp, ​​Frankfurt am Main 1986, p. 227.
  31. Olaf Struck: Flexibility and Security. Empirical findings, theoretical concepts and institutional design of employment stability. VS Verlag, Wiesbaden 2006, p. 374.
  32. Günther Schmid: Promotion of gender equality through transition labor markets . In: Karin Gottschall, Birgit Pfau-Effinger (Hrsg.): Future of work and gender. Discourses of development paths and reform utopias in an international comparison. Leske and Budrich, Opladen 2002, pp. 281–307, here p. 300.
  33. ^ Annette Henninger, Karin Gottschall: Freelancers in Germany's Old and New Media Industry: Beyond Standard Patterns of Work and Life? In: Critical Sociology. Volume 33, number 1–2, 2007, pp. 43–71, here p. 48 ff.
  34. ^ Ulrich Beck: Risk Society. Towards a New Modernity. Suhrkamp, ​​Frankfurt am Main 1986, p. 222.
  35. ^ Ulrich Beck: Brave new world of work: Vision: Global civil society. Campus Verlag, Frankfurt am Main 1999, p. 73.
  36. ^ A b Ulrich Beck: Risk Society. Towards a New Modernity. Suhrkamp, ​​Frankfurt am Main 1986, p. 225.
  37. ^ Günther Schmid: Paths to a new full employment. Transitional labor markets and activating labor market policy. Campus Verlag, Frankfurt am Main 2002, p. 218.
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  39. Anthony Giddens : The Third Way: The Renewal of Social Democracy. Suhrkamp, ​​Frankfurt am Main 1999, p. 49.
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  41. Anthony Giddens: The Third Way: The Renewal of Social Democracy. Suhrkamp, ​​Frankfurt am Main 1999, p. 80.
  42. Anthony Giddens: The Third Way: The Renewal of Social Democracy. Suhrkamp, ​​Frankfurt am Main 1999, p. 50.
  43. Anthony Giddens: The Third Way: The Renewal of Social Democracy. Suhrkamp, ​​Frankfurt am Main 1999, p. 80 f.
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