Unemployment Protection Research Articles

An analysis of informal workers and the coverage of South Africa's Covid-19 Temporary Employee/Employer Relief Scheme (TERS)

The Covid-19 pandemic required states worldwide to take action to contain it and, as part of this effort, adopt measures to mitigate its socio-economic impacts. In South Africa, these measures include the enactment of lockdown regulations in terms of the Disaster Management Act 53 of 2005. This article focuses on one of the measures, namely the Covid-19 Temporary Employee/Employer Relief Scheme (TERS), a system created in terms of the Unemployment Insurance Act 63 of 2001. TERS aimed to provide support to employers who were in distress at the height of the pandemic and unable to pay their employees. TERS falls under the scope of social security law because it is a measure that finds expression under the unemployment insurance system, which is an element of social insurance. This article argues, however, that temporary schemes such as TERS provide no solution to the long-standing problems of the unemployment insurance system and perpetuate its exclusionary practice of not covering informal workers. This is evident in the definitions of an employee and contributor in terms of the Unemployment Insurance Act (UIA). The two definitions lean towards offering coverage to workers in formal employment but not to informal workers. This leaves such workers destitute and vulnerable, as they have no protection; for instance, they became on furlough owing to the effects of Covid-19. This article proposes that the UIA's definition of employees be amended to include informal workers and thereby afford them unemployment protection as well.

COVID‐19 Labor Market Protection and Support for the Welfare State: Job Retention Versus Job Loss in Four European Countries

ABSTRACTThe COVID‐19 pandemic presents a natural setting to study how labor market protection policies may influence welfare attitudes because while lockdowns and economic recession threatened millions of jobs, job retention schemes shielded many workers from unemployment. We investigate support for unemployment protection and the unemployed among people active in the labor force and participating in the Mannheim Corona Study in Germany, Coping with COVID‐19 in France, ResPOnsE in Italy, and the British Social Attitudes survey in Great Britain. Two‐way fixed effects analyses on the German data show that there was a general increase in respondents' support over the onset of the pandemic and that while job loss significantly boosted support, there was little attitudinal difference between those who experienced job retention and those who continued working. We confirm these patterns with cross‐sectional analyses in all four countries, providing comparative insight into attitudes across the largest European economies. Unemployment is materially similar to job retention, but because it is associated with higher support, we contend that nonmaterial factors such as risk perceptions may be consequential in influencing preference changes when individuals lose their jobs.

Unemployment insurance for the self-employed: A conceptual way forward

In this contribution we give common guidelines on how unemployment schemes for the self-employed could be developed in practice. These guidelines have been derived from national descriptions contained in this special edition on unemployment protection for the self-employed, or in other recent comparative contributions on the matter. Our reference framework is the EU Council Recommendation (2019) on Access to Social Protection, and more in particular the overall objective that social protection should be designed in a labour status neutral manner and, where necessary, adapted to the specific work situation of the professional groups covered. Applied to unemployment, the design of the scheme should be as similar as possible to that of unemployment insurance for wage earners. However, it is crucial to adapt the rules as specifically as necessary to the nature of self-employed work, such as, for example, the fact that the self-employed do not work for an employer. Starting from this basis, we developed key rules with regard to unemployment schemes for the self-employed. We did so by addressing the essential components of unemployment schemes: the definition of the unemployment risk, financing, access and entitlement conditions, and re-eligibility in case of repeated claims for unemployment benefits. We also address recent evolutions in the labour market, such as coverage when multiple activities are performed (combining activities as an employee and as a self-employed person), and elaborate on situations involving temporary closure of the self-employed activity (e.g. due to Covid-19) and partial unemployment. In conclusion, we provide some reflections on the apparent ongoing evolution of the risk of unemployment towards a broader income protection scheme, which not only provides income replacement in case of a final loss of professional activity or self-employed business, but also gives structural income support if the person loses income partially due to external economic and/or social reasons.

Unemployment insurance for platform workers: Challenges and approaches from a comparative perspective

This contribution presents an overview of the challenges involved in ensuring that persons performing platform work (as either employees, self-employed, or in a third category) are able to effectively access unemployment insurance protection. It also addresses the specific approaches taken by European countries to tackle these challenges, relying especially on the contributions to this special issue on unemployment protection for the self-employed and platform workers. After presenting a brief definition of platform work, the contribution provides an overview of the main challenges linked to unemployment protection insurance posed by the features of platform work; we use primarily the Council Recommendation on access to social protection for workers and the self-employed as an evaluative framework. These challenges relate to both formal exclusion (due to classification as self-employed or marginal work) and effective exclusion (due to difficulties meeting minimum work requirements and lack of transparency on algorithmic management and platform work). The contribution then analyses some of the main approaches taken by European countries to address such challenges. Actions targeting platform work comprise (a) employment status reclassification; (b) establishment of a presumption of an employment relationship; (c) the setting of requirements to inform on the use of algorithmic management; (d) facilitation of transparency on platform work information; and (e) exemption from formal social security coverage of some forms of (marginal) platform work. General approaches with consequences for the unemployment insurance protection of platform workers include the application of the same criteria for access to unemployment benefits across employment statuses, as well as greater leniency on these criteria for certain forms of non-standard work. The contribution ends with a conclusion, which highlights the main gaps in unemployment insurance protection for platform work, and discusses avenues for action regarding platform work.

Unemployment protection for the self-employed and platform workers in Hungary

Unemployment protection for the self-employed and platform workers in Hungary

The principle of adequate social protection in the European Pillar of Social Rights: Assessing the instruments used to realise its potential

Improving the social security protection of atypical workers has been high on the EU agenda in recent years. With the adoption of the European Pillar of Social Rights in 2017, the EU wished to break away from a decade of austerity measures. The EU further developed the right to adequate social protection in the Pillar through the Recommendation on access to social protection for workers and the self-employed. This instrument urges EU Member States to ensure adequate access to social protection for workers, regardless of their employment relationship, and the self-employed. As part of the EU's recovery strategy during and after the Covid-19 crisis, several financial instruments were developed to support EU Member States. Through the Temporary Support to Mitigate Unemployment Risks in an Emergency, EU Member States received support for job retention schemes. The EU also adopted the Recovery Resilience Facility, which provided grants and loans. Another support instrument was the European Social Fund Plus. This article discusses those recent EU initiatives, focusing on unemployment and the protection of atypical workers and the self-employed. With the introduction of the European Employment Strategy (1997), a closer link was made at EU level between unemployment, increasing labour market participation and activation measures. Less attention was paid to ensuring adequate unemployment protection. In recent years, however, it appears that the EU has been playing an increasing role in providing funding for temporary support and in introducing changes to EU Member States’ policies.

Mapping social protection coverage for platform workers: A comparative analysis of Belgium, Italy and the Netherlands

The aim of this paper is to examine if and how the reclassification of platform workers from self-employment status to employment status can provide them with adequate social security protection. Little is known about how this transition would guarantee platform workers adequate social protection within the social protection scheme for employees. National social security schemes, in particular income replacement benefit schemes, often (still) depart from the standard employment relationship, leading to lower protection for atypical work forms. Platform workers combine several of the characteristics of atypical forms of work, such as low earnings, irregular working patterns and working. Integrating platform workers into employee social security schemes faces additional challenges due to the online nature of their work, algorithmic management, high levels of unpaid labor, and employer identification difficulties. This paper focuses on unemployment protection, as EU Member States struggle to provide adequate protection for workers with irregular work patterns and income fluctuations, in the case of (short term) income replacement benefits. By constructing nine ideal work patterns reflective of diverse nature of platform work and current practices among platform work, we analyse how different types of ‘employed’ platform workers may fare within the legislation of three EU countries (Belgium, Italy, and the Netherlands). This approach allows us to assess the applicability of unemployment protection to different working patterns among 'employed' platform workers, considering formal, effective, and adequate access to unemployment schemes as outlined in the Council Recommendation on access to social protection for workers and the self-employed (2019).

Unemployment protection for self-employed and platform workers: A study of the Spanish case

The objective of this study is to offer a snapshot of the level of unemployment protection provided in Spain to self-employed workers and platform economy workers, compared to employed workers affiliated with the general regime. This allows us to reflect on the convergent and divergent aspects of the protection provided to the two groups, as well as the greater or lesser proximity to the levels of protection indicated by the EU. Thus, the study is structured in three points: the protection afforded to the various groups and the differences in terms of the cessation of activity and unemployment benefit; some of the most characteristic aspects of these two types of unemployment protection; the financing of the cessation of activity benefit and the creation of an alternative protection mechanism as key points in the current Spanish political debate. Our final thoughts are presented in the conclusions.

Unemployment protection for self-employed persons and platform workers in Austria

The article describes the protection against unemployment for self-employed persons and platform workers under Austrian law. The aim is to provide an overview of the respective protection systems. Interpretation issues regarding individual provisions are not discussed in detail, as they are unlikely to yield insights for a comparative study. The article concludes with a brief summary of the current policy debate in Austria.

Unemployment protection for self-employed and platform workers in Belgium

This article analyses unemployment protection for platform workers and the self-employed in Belgium. In Belgium, the self-employed were traditionally not covered for unemployment, but since the 1990s, several steps have been taken to provide some protection. The scheme in place, now called the ‘bridging right’, has been regularly revised and extended, with the most recent reforms in 2022 and 2023. The Belgian legislator also took some initiatives to regulate platform work, by adopting, for example, legislation on the labour status of platform workers (2022). Platform workers are not treated as a separate category in Belgium with regard to unemployment, and they fall either under the scheme for employees or for the self-employed. In this paper, we will highlight the difficulties faced by platform workers in accessing unemployment protection, both under the scheme for employees and under the self-employed scheme. The analysis in this article shows that although important steps have been taken, several coverage gaps remain, in particular for platform workers, the solo (economically dependent) self-employed and persons who work in self-employment as a side activity.

Analysis of the Social Policy Organization in Post-Soviet Russia in the Context of International Experience

Relevance. The organization of social policy was significantly modified in Russia during the post-Soviet period, due to the transformation of the economic system. Many foreign countries at the end of the 20th and beginning of the 21st centuries also changed their approaches in the field of social policy, introducing market elements following the example of the United States, as well as responding to demographic changes and economic difficulties. Studying the features and dynamics of domestic and foreign social policy is valuable for consideration of the best practices and problems, for the development of political science and for making decisions.Purpose: show how the preservation of the goals of social policy in Russia after the collapse of the USSR was ensured when its instruments were changed, compare the domestic system with foreign ones.Objectives: to show what challenges did the social policy system face in Russia and abroad, how approaches to solving problems in the social sphere have changed, show the formation and functioning of pensions, the healthcare system, unemployment protection and other social policy measures in Russia and foreign countries.Methodology. The article relies on comparative historical approach, analysis of legal documents, institutions, organizational features and statistical data. The article is based on reports from government departments and analytical companies.Results. Economic and demographic problems at the end of the 20th and beginning of the 21st centuries create similar challenges for Russia and other countries, but in Russia the impact of these problems was stronger, and Russia also faced administrative challenges. In the post-Soviet period, Russia attempted to reorganize social support along the lines of insurance, but a universalist approach, which involves financing from taxes. The system of social policy in modern Russia does not fall behind foreign analogues in its architecture, scale and efficiency. Its weaknesses are a lot of duplicating benefits, outpacing rates of indexation of social payments and low financing of the healthcare system.Conclusions. Russia managed to preserve the most important achievements of the Soviet period in the field of social security, namely pensions, free education and health care.

Social Work Education – Specific Aspects of Social Activities with Unemployed Persons

Social work education is faced with the serious challenges of adequately reflecting the main trends of practical activity oriented towards individual target groups. In this context, the essential characteristics and specific features of social work with unemployed persons as a mandatory element and basic form for the realization of the functions of social protection in case of unemployment, should be adequately reflected in the content of the training of future specialists. The article examines the conceptual view of social work with unemployed persons as a certain sequence of social activities and a variety of social interventions aimed at individuals, families or certain groups with the aim of material support and employment creation. Focusing on the content characteristics of social work with this target group as a sequence of targeted social activities differentiated by various criteria in the individual components of the unemployment protection system, the research focuses on systematizing basic requirements for the content of training in the professional direction “Social Activities”.

The economic and welfare state determinants of well-being in Europe

This paper analyses the effects of unemployment and social provision on population well-being in ten European countries. We argue that the nature of the linkages between well-being and unemployment rate is non-linear, by identifying the presence of a threshold in unemployment by means of the Hansen test (1999, 2000). Happiness was found to be negatively affected by the unemployment rate both in the presence of linearity in unemployment and under the two regimes determined by the identified threshold. Our results show that social provision, as a whole, and health-care benefits in particular negatively affect happiness while spending on unemployment protection and active labour policies have a positive impact on the well-being suggesting a different allocation of social resources. Furthermore, these non-linear linkages would help the policy-makers to take into account different groups when making decisions about the allocation of social resources.

County trajectories of pyramid scheme victimization.

Community-level vulnerability to pyramid scheme fraud may be affected by place-based sources of strain and opportunity. Using national victim data from a pyramid scheme fraud case from 2000–2013, this research explores pyramid scheme adoption with group-based trajectory modeling (GBTM). GBTM is used to look for distinct trajectories of pyramid scheme join rates and to explore the effect of strain, as measured by a county’s Social Vulnerability Index and unemployment rate, and opportunity or protection, as measured by a series of social capital variables, on the group trajectories. Findings suggest that county-level strain, including the county’s Social Vulnerability Index and unemployment rate are related to pyramid scheme victimization, especially early adoption. We also find that social capital variables – which can, in theory, reduce strain or increase opportunity – have a nuanced relationship with fraud victimization. While our findings are drawn from a single pyramid scheme, they point to the potential to analyze case data to inform preventative and monitoring strategies appropriate to local-level characteristics.

Readjusting unemployment protection in Europe: how crises reshape varieties of labour market regimes

The labour movement has long fought for the social protection of unemployed workers as a major social right in capitalist economies across Europe. Employers, on the other hand, have often been reluctant to accept such intervention in the labour market. Hence, scholars explaining differences in the evolution of unemployment benefit systems need to consider the power distribution of labour relations, the context of the welfare state and the variety of capitalism in which they are embedded. This article makes three contributions. First, it offers a heuristic that systematically identifies the analytical affinities between unemployment protection and its institutional context. Second, it offers a succinct overview with a focus on major crises and subsequent adaptations in labour market regimes, ranging from the oil shocks in the 1970s to the Great Recession and the current COVID-19 pandemic. And third, it discusses whether European economies have adjusted their unemployment protection to recent crises and assesses the effects on labour market regimes.

The Ghent system in transition: unions’ evolving role in Sweden’s multi-pillar unemployment benefit system

This article discusses the multi-faceted and changing role played by trade unions in providing unemployment benefits in Sweden, a country using the so-called Ghent system. As an important institutional feature explaining the high rate of unionisation in the Nordics, the system has been much debated. This article provides a comprehensive account of the retrenchment of the state unemployment benefit system (UBS) and the development of occupational and private UBS pillars providing complementary protection. It also introduces an ongoing reform discussion where the social partners are proposed to govern the unemployment insurance system via collective agreements, while retaining the union-linked insurance funds. The core institutional feature of the Ghent system – voluntary membership of a union-linked insurance fund – is turning out to be highly resilient despite frequent attempts to weaken the union power stemming from it. However, the system’s role in providing unemployment protection has changed due to its development into a multi-pillar structure, meaning that its future prospects are uncertain.

Medium-Term Forecast of Government Spending on the Unemployment Social Protection System in Russia in the Conditions of Economic Recession.

—A simulation model of the Russian unemployment social protection system is developed and used to study the impact of the economic crisis caused by the COVID-19 pandemic, demographic processes, and the increase in retirement age on federal spending on unemployment benefits. Trends of overall and registered unemployment across various socio-demographic groups in 1992–2020 are analyzed, with special attention paid to periods of economic recession and recovery. The identified patterns are used to develop modeling scenarios. Calculations show that in the unfavorable scenario government spending on unemployment benefits will increase many times. As a possible solution to the problem, it is proposed to convert the unemployment social protection system to insurance principles. The time frame in which reforming the system would be less expensive for the federal budget is defined.

Labour market protection across space and time: A revised typology and a taxonomy of countries’ trajectories of change

We measure and interpret the evolution of labour market protection across 21 high-income countries over three decades, employing as conceptual foundations the ‘regime varieties’ and ‘trajectories of change’ developed by Esping-Andersen, Estevez-Abe, Hall and Soskice, and Thelen. We measure labour market protection considering four institutional dimensions – employment protection, unemployment protection, income maintenance and activation – and the evolution of the workforce composition. This measurement accounts for the joint evolution of labour market institutions, their complementarities and their relation to outcomes, and mitigate the unrealistic Average Production Worker assumption. We handle the multi-dimensional nature of labour market protection with Principal Component Analysis and capture the characteristics of countries’ trajectories of change with a composite score. We contribute to the literature in three ways. (1) We portray a revised typology that accounts for processes of change between 1990 and 2015, and that clusters regime varieties on the basis of coordination and solidarity levels, that is, Central/Northern European, Southern European, liberal. (2) We illustrate that, despite a persistent gap, a large majority of Coordinated Market Economies experiencing a decline in the level of labour market protection became more similar to Liberal Market Economies. (3) We develop a fivefold taxonomy of countries’ trajectories of change (liberalization, dualization, flexibility, de-dualization and higher protection), showing that these trajectories are not always path-dependent and consistent with regime varieties previously developed in the literature.

Job search, unemployment protection, and informal work

AbstractInformal work is a significant feature of labour markets in many developed countries, despite having unemployment protection (UP) programmes. We use a model of job search over the duration of unemployment to study how the structure of these programmes influences the incentive of the unemployed to engage in informal work while searching for formal jobs. Accounting for informality enables the model to jointly explain three known features on job search dynamics: a temporary re-employment spike, low search effort, and negative duration dependence. The quantitative analysis finds that both informality and unemployment can be reduced by redistributing (across either workers or programmes), rather than increasing, the overall UP budget.

State and unemployment in central capitalism and Brazil: the constitution of unemployment as a public problem and the degree of unemployment protection

This article analyzes the State’s role in facing unemployment, focusing on two related aspects: the constitution of unemployment as a public problem and the development of employment policies. First, to discuss the trends observed in central capitalist countries, this article presents information from the nineteenth century onwards, using consolidated methods in the international debate. Next, the Brazilian trajectory is examined, regarding its welfare system and the low capillarity of wage relations. In Brazil, the emergence of unemployment on public debate only occurred in the second half of the twentieth century, and once constituted, the public socialization of unemployment risks always showed quite reduced indicators. Thus, this article points out the challenges of Brazilian employment policies, considering the distance between their rules, designed to structured labor markets, and the characteristics of labor relations in peripheral capitalism.