Social security for the twenty‐first century

Abstract

Social security schemes are accused of undermining both competitiveness and employment, because of the burden of contributions, and weakening economic vitality through their disincentive effects on work and levels of saving. Yet at the same time they are called upon to meet new social needs arising from family instability and changes in the labour market – growing unemployment and reduced job security, widening pay differentials and a decline in the position of self‐employed workers – trends which coincide with the globalization of markets. This article postulates the need for improved redistribution (without making changes in social security coverage) in order to achieve a balance between occupational and national solidarity which favours the latter, since stable and full‐time employment for all can no longer be assured.