Flexibility and security in the labour market: An analysis of the governance of inequality

Abstract

The financial crisis drew attention to the way in which workers in certain countries had been able to sustain consumption through housing and consumer credit despite insecure labour-market positions. This indicates a need to expand the analysis of the relationship between flexibility and security in labour markets beyond the normal scope of labour and social policy to includemany other aspects of not only public policy but also corporate practice that affect that relationship. Individuals are seen as based within a number of col- lectivities within which life chances are collectively deter- mined (or CLCs). These collectivities are subject to various forms of governance. Finally, attention is given to the di- mension of sustainability, the capacity of any combinations of policies and practices to endure self-destructive tenden- cies. The governance mechanisms of CLCs are then seen as using one or more strategies for achieving a certain balance between uncertainty and security: externalization of risk on to other CLCs; postponement of risk-bearing to future peri- ods of time; externalization of risk on to certain members of the CLC itself; widespread sharing within the CLC. This approach is then used to consider the main policies and practices relevant to the field: employment law; social policies directly delivering services; advancement of skill and employability levels available within the population; public promotion and/or protection of sectors and pro- duction locations perceived to be of strategic importance, including public employment; government demand man- agement; insurance and pensions; trading relationships