Abstract
Abstract.Over the past 20 years or so, the southern European model has undergone substantial change in every way. The changes in industrial relations, wage‐setting and employment protection legislation have tended to increase wage and labour flexibility and restrict labour market segmentation. Changes within the welfare state have sought to improve labour force skills, fill gaps in social protection, reduce inequalities in social security and contain social expenditure growth. Yet institutional change has not eliminated the main features of this model: pronounced labour market segmentation and familialism; however, extremely low fertility rates are indicative of the limits of familialism in the near future.
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